Apecoin’s (APE) upward journey since May 12 has seen one higher low created so far.
Since its high of £21.9 on April 28, APE has been declining. The price initially saw a bounce at the £11.7 horizontal area, evidently validating it as support. However, the upward trend was short-lived, and the price fell the next day.
A drop in the RSI to below 50 accompanied the breakdown. Bearish trends are indicated by such RSI fluctuations, and in order for the trend to be termed bullish, the RSI must rise over 50.
The price has dropped to a low of £4.10 on May 11 thus far. Since then, it has risen marginally, and the coin now trades at £5.31.
Despite the gain, charts indicate that the price is still facing substantial resistance at £6.34.
A good examination of the six-hour chart reveals that since May 9, the price has been following a descending resistance line. On May 31, the line rejected it.
Furthermore, APE has already established a higher low.
Between £6.11 and £6.58, the main resistance area exists, the Fib retracement resistance area of 0.5–0.618. It also ties in with a horizontal area that served as support previously. It is now expected that the area will act as resistance.
A breakout from resistance line would still have APE face significant resistance on its way to £6.58.
The RSI on the six-hour chart is at 50, which is considered neutral. As a result, it is not much help in predicting whether or not APE may break out.
Since the April high, the downward movement has resembled a five-wave decline. Thus, the current bounce could be part of an A-B-C corrective structure.
If this is the case, the price could rise to £8.72, resulting in a 1:1 ratio between waves A and C. If this is the right count, though, it would imply that another downward movement is on the way.