Despite the fact that it is approaching a new all-time high, Apecoin (APE) is showing weakness and is trading inside a short-term bearish pattern.
APE has been moving upwards at an accelerated rate since April 18, when it had reached a low of $10.90. In a span of only 10 days, the price increased by 90%, leading to a high of $21 on April 28.
While APE reached an all-time high price of $28 during its launch on March 17, the current high is the highest price reached since.
More importantly, the price has reclaimed the $14.30 area, which previously acted as resistance. The area is now expected to provide support.
Short-term APE movement
Cryptocurrency influencer @Jessehj1 tweeted a chart of APE, stating that the price is gradually approaching a new all-time high.
The two-hour chart shows that APE has been trading inside an ascending wedge since April 20. The wedge is considered a bearish pattern, meaning that a breakdown from it would be the most likely scenario.
Furthermore, the pattern has been combined with bearish divergence in the RSI. As a result, a breakdown from it would be the most likely scenario.
If one occurs, the closest resistance area would be at $16.80.
Wave count analysis
The wave count supports the possibility of a short-term decrease, since it indicates that APE is completing an ending diagonal, hence the shape of the wedge.
Currently, waves 3:5 have a 1:0.618 ratio, which is the most common one for such patterns.
An increase above $23.32 would invalidate this pattern, since it would make wave three the shortest of the bullish waves.
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