Disclaimer: The findings in the following analysis are the sole opinions of the author and should not be considered investment advice
- ApeCoin has been bullish for the past two weeks
- It hit a higher timeframe resistance zone near $4.5, can the bulls break above it?
Read ApeCoins [APE] price forecast 2023-24
As mentioned in a previous article, ApeCoin saw significant resistance in the $4.2-$4.5 region. Open interest behind the asset jumped higher as the price rose past the $3.2 mark, but has eased somewhat in recent days. On shorter time frames, the APE continued to have a bullish bias.
The 12-hour bearish breaker looms large as bulls try to advance past $4
On the lower time frames, ApeCoin had neutral to bearish momentum in the first couple of days of December. It wasn’t until November 5 that APE began to see renewed pressure from buyers to get prices above $4.2.
The region highlighted by the red box on the price chart represented a 12-hour bearish breaker formed on November 2. There was a bullish order block at the time, but it was broken by the decisive sell-off on 8 November.
Since then, it has represented a region of strong resistance. APE met with a refusal there on 30 November. ApeCoin crashed from $4.47 to $3.78 on December 2nd. This bearish breaker also coincides with the 61.8% and 78.6% Fibonacci retracement levels (yellow).
Bitcoin has resistance in the $17.6k-$18k region as well. It was unclear how BTC or APE could move in the coming days. But a rejection from the $4.2-$4.5 region was a possibility. The $4 mark was important psychologically. There was also a significant pocket of liquidity in the last week.
Therefore, a drop below it and a subsequent retest could offer a selling opportunity. Meanwhile, buyers can wait for a breakout above $4.6 and a retest of the $4.5-$4.6 region before trying to enter.
Open interest is on the rise again along with the price
From November 19 to November 30, Open Interest was in an upward trend. The price of ApeCoin was also in an upward trend during the same period as APE rose from $3.15 to $4.4. This showed that buyers were quite confident in the asset despite the market conditions of recent weeks.
In early December, OI fell as APE fell to $3.88. At press time, both the open rate and the price were in an upward trend again. This suggested the likelihood of further gains. Still, buyers need to be cautious due to the higher timeframe resistance at $4.5.