Post retest fall may slump APE price below $4.2

The Apecoin(APE) price retested the breached support level of $5, giving an entry opportunity for coin sellers. However, a bullish engulfing candle during the retest phase with a  significant jump in volume indicate the buyers are quite aggressive at the lower levels.

Key points of APE Analysis: 

The APE price shows sustainability below $5
The coin price nosedive below 0.618 Fibonacci retracement level
The intraday trading volume in Apecoin is $616.5 Million, indicating a 13% loss.

Source- APE/USD chart by Tradingview

A V-top reversal from the $7.7 resistance plunged the APE prices to the $4.9 mark, indicating the correction phase has evaporated nearly 61.8% gains obtained during the—Mid-June to August recovery.

The downfall registered a 36% loss concerning the local top of $7.7. Furthermore, the sellers have knocked out several support levels during the ongoing correction, which is the most recent is $5. 

However, the APE took a midway reversal with a bullish engulfing candle which retested the breached support of $5. Today, the coin price is 0.5% down and shows sustainability at this lower level.

With sustained selling, the APE price should plummet 14% to reach the $4.25 support. But, the price action confirmation will be the ultimate entry signal for sideline traders.

On a contrary note, if buyers could push the prices above $5.5 resistance, the coin holders may get a recovery opportunity and challenge the prior swing high of $7.78.

 Technical Indicator

EMA’s: the down-sloping 20-and-100-day EMA reflects both the long-term and short-term, reflecting a bearish outlook. Moreover, these EMAs.nearing a bearish crossover, could offer an added confirmation for sellers.

RSI indicator: the daily-RSI slope rebounded from the oversold neckline, indicating the buyers are reacting at discounted APE prices. Moreover, a bullish divergence in this momentum indicator suggests the rising underlying bullish momentum.

Resistance levels: $5 and $5.5 
Support levels: $4.62 and $4.22