• ApeCoin (APE) is trading roughly flat on Sunday amid a pullback in broader cryptocurrency markets.
• ApeCoin has benefitted from a macro optimism-fuelled rally in broader cryptocurrency markets, and price predictions remain bullish.
• APE’s price momentum has been increasingly bullish ever since the crypto token broke to the north of a long-term pennant structure early in January.
The Ethereum network-based ERC-20 token at the centre of Yuga Labs‘ (the creator of the Bored Ape Yacht club non-fungible token collection and Otherside metaverse) web3 ecosystem, ApeCoin (APE), is trading roughly flat on Sunday amid a pullback in broader cryptocurrency markets. After being last seen changing hands in the $5.50 per token area, down around 8% from its earlier weekly highs just under $6.0 per token, it still is on course to close the week around 7.5% higher. This would mark a third consecutive positive weekly close for ApeCoin, which is now up over 50% since the start of the year.
The cryptocurrency has been bolstered by a macro optimism-fuelled rally in broader cryptocurrency markets. This has pushed the price of ApeCoin to new heights and made it one of the most popular tokens in recent times. As such, price predictions remain bullish, with ApeCoin’s near-term technical outlook looking very strong.
Since early January, the crypto token has broken to the north of a long-term pennant structure, a development that has been followed by two further bullish technical developments. Firstly, prices broke and held above the key $4.50 resistance (now support) area, and secondly prices also recently found strong support at the 21-Day Moving Average. With APE now having pushed sustainably back to the north of its 200DMA, bulls are optimistic that it will soon test the September highs in the $6.38 area before a further push higher.
In order for ApeCoin to reach new heights, it will need to break through various levels of resistance. The most pressing of which is the $5.8 level, which is currently acting as a strong resistance level. If this level is broken, then ApeCoin could have the potential to reach the next level of resistance at the $6.38 area.
In the short-term, traders should be aware that the current levels of resistance may not be enough to prevent a pullback. If a pullback does occur, then the key levels to watch out for would be the $5.5 and $5.0 levels. As long as these levels hold, then traders can be confident that the current bullish trend will remain intact.
Overall, the near-term technical outlook for ApeCoin looks very strong and the potential for further gains is high. However, traders should be aware of the potential for a pullback and remain vigilant with their trading strategies. With the right strategy and a bit of luck, ApeCoin could reach new highs in the near future.