In recent days, the ApeCoin (APE) also benefited from the appreciation of the market as a whole. The Bored Apes cryptocurrency engaged a five-day streak that saw the APE regain psychological resistance at $5.
Next, the cryptocurrency topped another resistance at $5.63, but the price pulled back and is now quoted at $5.31. Even so, the APE can still break this resistance and show a new appreciation of up to 17%.
In this regard, if the APE breaks the $5.63 resistance, the final target of this new bullish move is the $6.45 region. Therefore, the further appreciation relates to the current price movement of the APE towards the new target. And what does the price need to do to follow this expected path?
Recovery in V and new valuations
As per the chart below, the trend reversal made the APE price drop all the way to the shared support of 0.786 Fibonacci retracement level at the $4,178 region. However, amid a sudden rally in the cryptocurrency market, the cryptocurrency has bounced back from this support.
After reaching the bottom of this correction, the APE amended a very positive sequence and recovered the level of $5. In fact, the cryptocurrency even broke its first resistance, but the movement did not have the strength to continue its upward trajectory.
The uptrend lifted the APE price for five consecutive days and represented a positive result of 33.5%. Furthermore, the bullish run breached the $5 immediate resistance and hit the $5.63 resistance.
However, the APE opened this Monday (12) with a strong drop of 10.68% that softened throughout the day. With this, the price of the currency shows an opportunity to break out of the resistance. But even with the drop, the APE is still worth more than US$ 5.
If the cryptocurrency resumes its recent appreciation and manages to break through the resistance, it could reach the final target, estimated at $6.45. In relation to the current price, the new movement corresponds to an appreciation of 17.67%.
Challenges for the new high
However, if the APE dips below Fibonacci 0.786 ($5.02), it could indicate weak bullish momentum. In other words, an appreciation that did not come with enough force to be maintained. Therefore, the price action needs further confirmation to indicate that the downside correction phase is over.
For that, a break of the $6.45 resistance is needed to get a recovery opportunity for APE holders. Doing so will encourage buyers to appreciate another 17% and challenge the last swing resistance at $7.6.
However, a long wick rejection attached to the daily candle indicates that buyers face supply pressure at this resistance. So, isn’t the correction phase over? If the APE fails to break the $5.63 resistance, the price can seek the downside targets at $5.02 and $4.17.