ApeCoin, developed by Yuga Labs, is trading at all-time highs ahead of Saturday’s Otherside NFT sale. ApeCoin’s price has fluctuated dramatically since its debut on March 17th. It plummeted to an all-time low of $6.21 shortly after its introduction but quickly recovered. ApeCoin has set a series of new all-time highs since April 21 and marked a new ATH yesterday at $22.38.
If things do not calm down, the price of ApeCoin is on a risky path that might lead to a sharp correction. Given the strong optimistic enthusiasm around APE, the approaching correction may present an opportunity for patient investors to accumulate the altcoin at a discount before it reaches a new all-time high.
Will APE Coin Price Face Retracement?
Since April 20, the ApeCoin price has hit four new highs and three new lows, including a new all-time high of $22.33. A falling wedge is revealed by connecting these swing points with trend lines.
By analyzing the distance between the first swing high and low, this technical pattern predicts a 17 percent downswing. While ApeCoin has yet to surpass the bottom trend line of the falling wedge, investors should expect it to do so on the next leg down around $19.89. As a result, adding the 17 percent figure to this figure yields a target of $16.47.
The negative divergence between the price’s higher highs and the Relative Strength Index’s (RSI) lower highs supports the downswing thesis. This technical pattern indicates that momentum is diminishing while the value of the underlying asset rises.
ApeCoin’s price is expected to retrace around 18 percent from its present position to $16.47. While this move has a short-term bearish view, it is a great opportunity for stalled buyers to accumulate.
The rise from $16.47 would most certainly take ApeCoin to a new all-time high of $24.57. This run-up would result in a 50 percent gain in total.
The price may test the $20 support if there is a downside correction. On the daily chart, the first big support is emerging near the $19.65 level and a trend line. Any further declines could push the price towards the $17.80 mark.