Reading time: ~2 m
The price of ApeCoin has braced itself for growth, but the recent collapse has forced many buyers to step aside. However, breaking through the bullish pattern can be a tactic used by smart money to collect liquidity before an explosive rise.
The price of ApeCoin shows an optimistic outlook due to the formation of a bullish pennant. A surge of 76%, which occurred between May 12 and 13 after the crash caused by LUNA, formed a “flagpole”. Consolidation in the form of lower highs and subsequent upper lows created a “pennant”.
This model signals a 43% increase to $12.80, which is determined by measuring the height of the flagpole and adding to the breakout point at $8.90. Theoretical forecasts are optimistic, the actual behavior of the price pushed APE to move away from the pennant.
Even though this movement technically invalidates the settings, it is a money manipulation tactic aimed at collecting stop losses below the oscillation lows. Once the liquidity is collected, the price of ApeCoin will reverse its trend and go up.
For this scenario to unfold, APE needs to rise above the downtrend line, also known as the pennant top trend line. Such a development will indicate that the price of ApeCoin is ready to re-test the barrier at $ 10.68. This rally will be 35% of the climb, but this is not the limit of growth. If the bulls manage to overcome this blockade, APE could return to the $12.80 ceiling, bringing the overall increase to 62%.
Despite the optimism, a dip down would render the bull’s pennant invalid. In addition, a decisive move that leads to a lower low beyond $7.19 will reverse the bullish trend in the price of ApeCoin and cause a collapse to $5.
#pattern #lead #increase #price #ApeCoin
