Counting on the appreciation of ApeCoin (APE), a token linked to the famous NFTs Bored Apes, does not seem to be the biggest bet of 2024. After all, APE has recorded several successive drops over the last few weeks.
That poses a small hindrance to traders betting on the downside, as they grapple with broader market uncertainty. On the other hand, buyers used this indecision to their advantage, leading APE to end a daily chart pattern on a bullish note.
This closure caused the market to intensify the underlying buying impulse and change, at least in the short term, expectations with the token. So, here are three reasons to be optimistic about the APE price in the long term.
Strong accumulation zone
Over the past ten months, APE price has shown two major lows near the $2.85 to $3 area of interest. Using this support, the token price previously initiated two major price rallies in June and July 2022 .
Furthermore, the price also recorded a third low in November 2022. The movements indicate that buyers were aggressively accumulating at this level.
Although the ApeCoin price chart reflects a sideways trend between the $3 and $7.80 mark, interested traders have two excellent opportunities to go long.
Furthermore, the breakout of $7.8 will be an important signal for the resumption of an uptrend. But the road is long, given that the current price of the token is US$0.68.
Bullish pattern signal soon recovery
Amid growing uncertainty in the market, APE price has resonated between two converging trend lines for over a month. The lines are shown in the example chart below, forming a golden triangle.
This short consolidation reflects the formation of a symmetrical triangle pattern on the daily chart. The structure of the pattern resembles an indecisive sentiment, but there was a price breakout for the trendline explosion.
On April 10, a bullish breakout from pattern resistance reflected buyers winning the contest, which increased the chances of an upcoming bullish rally for ApeCoin.
If the ApeCoin price remains above the violated trendline, the APE price could rise 20% from current levels, targeting the $5.3 resistance. On the other hand, if the APE price holds below the local resistance of $4.55, the bullish thesis will be invalidated.
Bullish signal for ApeCoin from technical indicator
Although ApeCoin price is moving sideways, a closer look at the weekly Relative Strength Index (RSI) slope indicator shows a notable upward trend.
RSI is a widely used tool in technical analysis that measures the strength of an asset's price movement by comparing its recent gains and losses. Thus, the bullish divergence of the RSI slope indicates the growing buying pressure around the $1 support zone for ApeCoin.
