The potential bullish structure that had been forming since June 15 has been invalidated as ApeCoin (APE) has seen a breakdown from an ascending support line.
On June 15, APE started to climb upward, and on August 5 it reached a local high of £6.59. During this period, the meme coin had been trading above an ascending support line; however, on August 19, the line was broken.
After that, it started to descend again and on August 26 it finally broke through the £4.45 horizontal support area. This reinforces the chance that the bullish structure that appeared to start on June 15 will be invalidated.
Without exhibiting any sign of a bullish divergence, the daily relative strength index (RSI) has broken down from 50 and is currently declining.
Resistance is now expected to come from the £4.45 region. If the bearish trend persists, the nearest resistance level would be around £3.59.
An APE chart surfaced noting that the price has returned to the £4.45 horizontal support level. Since then, the coin has fallen below this level.
The nearest resistance level, at £4.62, would be reached in the event of a breakout above the line, resulting in a target resistance range between £4.45 and £4.62.
The potential scenario is for this area to be validated as resistance, which would be followed by another decline toward £3.59.
ApeCoin (APE) completed an A-B-C corrective structure commencing on June 15, according to the most plausible wave count. If so, additional lows are expected to ensue.
The 0.618 fib retracement support level appears to be the price’s current target. This could start the likely hike to £4.53 in price.
This particular wave count would be invalidated by a rise above the C wave high at £6.60.