Despite positions worth about £3.19 million getting liquidated in the last 24 hours, ApeCoin (APE) maintained a bullish bias. The bears have not yet been granted control of the £4.97 support zone.
Chart data can throw light on whether the buyers can hold on and perhaps even force a rally in the coming days.
The £5.00 level appeared as a critical support level on the hourly chart. These lows of the last two days are the higher lows of the bullish structure on the four-hour chart. Therefore, the price needs to remain above the £4.86-£5.00 range to maintain the bullish bias. The bias would change to bearish in the event of a drop.
The 23.6% extension level for the coin was plotted based on the the Fibonacci retracement levels from a few days ago. The climb to £5.64 was swiftly sold off due to the recent volatility.
The support zone at £4.97 and the ascending trendline support are converging, with another bounce toward £5.32 on the cards.
Any significant bullish drive seemed to be absent. Increase in the downward movement was highlighted with the Relative Strength Index (RSI) falling below neutral 50 and retesting it as resistance. Since August 19, the Accumulation/Distribution (A/D) line has slowly risen, reflecting the efforts of the APE bulls. But it failed to overcome a level of local resistance and was again rejected.
Over the last trading day, there was a substantial inflow of capital into the market as indicated by the Chaikin Money Flow (CMF) indicator staying above +0.05.
If retested, the £4.97 zone could bring a buying opportunity. With there also being the higher lows from a bullish structure on a higher timeframe, some support in this area could be found. A dip below £4.86 would mean invalidation.
Therefore, a somewhat low risk long position with targets at £5.41 and £5.64 could be taken into consideration.