The recent pullback in the price of BTC has also taken much of the cryptocurrency market with it. As a result, some altcoins that showed promise saw their price melt, as is the case with ApeCoin.
Although ApeCoin emerged with a lot of hype in the market, this was not enough to sustain its value which has been falling since its launch.
As analyst Akash Girimath pointed out, the price of ApeCoin showed an increase in selling pressure that pushed it beyond the immediate support level.
“This development could lead to further collapse if APE buyers do not defend key tiers,” he said.
Furthermore, he highlighted that the price of ApeCoin has dropped by 22% in the last 7 days, denoting an increase in selling pressure. Additionally, he said that this move comes after the APE failed to breach the $14.23 to $15.98 supply zone.
“Since then, the altcoin has retested the $12.28 support level and is currently showing signs of breaching the two-hour demand zone, extending from $11.52 to $12.26,” he said.
Girimath further said that as this area houses both a demand zone and a support level, breaking the former will indicate an increase in selling pressure and trigger a further decline.
“However, if buyers unite, there is a good chance that a rally above $12.26 will alleviate this bearish outlook.”
In that vein, a consolidation above $12.26 could be the key to triggering another run to $14.43.
“This move would constitute a 25% rise from the current position at $11.48. In a highly bullish case, the ApeCoin price could extend and retest its all-time high at $17.46,” he said.
However, a failure to quickly recover above $11.52 will indicate a lack of buying pressure. In this case, a four-hour candlestick closing below $11.52 will invalidate the bullish thesis.
“Such a development could also trigger a possible drop to the $9.64 support level. Here, buyers can come in and buy APE at a discounted price and trigger another uptrend attempt.”