- ApeCoin price is showing a head and shoulders formation, suggesting an impending decline.
- The setup calls for a 15% drop to $4.19, but things could stabilize around $4.52.
- A daily candlestick close above the neck line at $4.96 will invalidate the bearish thesis.
ApeCoin price has sparked an impressive rally over the past couple of weeks, which appears to have come to an end. The recent drop in altcoins, including APE, is due to the sudden shift in Bitcoin’s bias from bullish to bearish.
ApeCoin Price Ready To Drop Even Lower
The price of ApeCoin increased by 38% between September 7 and September 13 after two weeks of consolidation. Our previous post predicted this explosive move which formed a local high at $5.89. Since that move, APE has formed a head and shoulders pattern.
This technical formation consists of three peaks, the central one, aka the “head”, is larger than the other two, called “shoulders” and are of comparable heights. The bases of these peaks usually rest on a level of horizontal support called the “neckline.”
The setup calls for a 15% drop, determined by adding the distance from the head to the neckline at the breakout point. The price of ApeCoin broke through the neckline at $4.96 on September 16, which puts the target at $4.19.
Although the theoretical outlook predicts an extremely bearish target, investors should consider the support levels of $4.65 and $4.52 to mitigate the drop in ApeCoin price from $4.84.
APE/USDT 4-Hour Chart
While things look bearish for the price of ApeCoin, a daily candlestick near the neckline at $4.96 that turns this level into a support floor will invalidate the bearish thesis of the APE.
In such a case, the price of ApeCoin could attempt a recovery to $5.34 and potentially extend this rise to retest $6.00.
The video below talks about Bitcoin price and its potential outlook, which could influence the price of ApeCoin.