The ApeCoin (APE) price has reclaimed a crucial horizontal resistance area and validated it as support. This could be the first step in a prolonged upward movement.
The news front on ApeCoin has been quiet since staking went live at the beginning of Dec. However, on Jan. 4, watchmakers Timex launched 500 watch pieces that feature Bored Ape Yacht Club and Mutant Ape Yacht Club non-fungible tokens (NFTs).
Therefore, alongside the physical watch, there will be a digital version in the form of an NFT containing the user’s virtual avatar. It is worth mentioning that the mint price of 1.5 Ethereum (ETH) received considerable criticism from the community.
ApeCoin Reclaims Crucial Level
The APE price has increased since Nov. 14, when it deviated below the $3.40 horizontal area (red circle). At the time, it seemed that the ApeCoin price had broken down from the area. However, the ensuing upward movement renders the breakdown as merely a deviation. Significant increases often follow such deviations.
On Nov. 26, the APE price moved above the $3.40 horizontal area and validated it as support on Dec. 17 (green icon). These are all considered bullish signs.
While the RSI movement above 50 can be considered a bullish sign, similar increases (green circle) have failed to materialize over the past five months. As a result, we cannot say with certainty that the RSI is bullish.
But, the most bullish sign comes from the breakout of a descending resistance line that had been in place for 150 days. While a significant upward movement has not followed the breakout, movements above such long-term structures usually lead to a sustained increase.
If the upward movement continues, the main resistance area would be at an average price of $5.15, created by the 0.5 Fib retracement resistance level. Conversely, a fall below the ascending support line would mean that the breakout was not legitimate.
ApeCoin Price Prediction for Jan: Will Increase Continue?
The technical analysis from the four-hour time frame shows that the APE price has followed an ascending support line since Nov. 13. The line has been validated numerous times (green icons), most recently on Dec. 30, catalyzing the current upward movement.
The APE price also seems to have broken out from a descending resistance line (dashed). But, its exact slope is unclear due to the presence of numerous wicks. So, the breakout cannot be confirmed.
However, the fact that the Ape coin price broke out from a long-term descending resistance line in the daily time frame makes this short-term breakout more likely.
Moreover, the ascending support line combined with the $4.32 resistance area create an ascending triangle, which is considered a bullish pattern. A potential breakout from it would be expected to take the APE future price to the previously outlined $5.15 resistance area.
To conclude, while the long-term APE price analysis is still unclear, the most likely short-term movement is a breakout toward $5.15. On the other hand, a close below the current ascending support line would invalidate this bullish hypothesis and likely send the APE price to new lows.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.