Apecoin (APE) eyes a 30% drawback after Eminem and Snoop Dogg-driven rally

YEREVAN (CoinChapter.com) — Bored Ape Yacht Club’s ApeCoin (APE) bottomed out at $3 on June 18 and has gained 60% since, reaching nearly $5 on June 29. However, the APE bulls may not have enough time to reap the rewards, as the token forms a bearish setup.

Bearish Rising Wedge

In detail, APE formed a Rising Wedge, best visible on the four-hour chart. It is confirmed by price fluctuating inside two ascending, converging trendlines. Rising Wedges are considered bearish reversal patterns. Thus, the setup intensifies the risks of a selloff in the upcoming sessions.

Moreover, a drawback after exhausting a Rising Wedge typically equals the maximum distance between the structure’s trendlines. That pins the target price at $3.4, or 30% lower than today’s price

Additionally, the trading volumes on the four-hour chart have declined after peaking on June 28, confirming the selloff fears.

Also read: BAYC's ApeCoin (APE) will hit $100 — analyst.

In detail, weakening trading volumes signal growing passivity among investors. Typically, it indicates insufficient weight behind the uptrend and hints at a looming rally halt or a decline. However, the reasons behind the upside move are noteworthy.

What brought on the APE price surge?

APE token’s upside move was partially driven by a music video released by Grammy-winning rappers Eminem and Snoop Dogg. As a result, APE quotes saw a more than 30% spike on June 25-26. The hip-hop icons appeared as characters from “Bored Ape Yacht Club,” the famous NFT collection.

The Otherside Metaverse development also triggered the upside move, along with several proposals and application programming interfaces (APIs).

Also read: Apecoin bounces 80% in two days – will the rally continue?

ApeCoin specified that it established several changes since the last report.

3 new AIPs have been posted on Discourse for discussion – 1 AIP Draft was received and reviewed – Questions were sent to 2 AIPs – Seven AIP Ideas were moved to author preparation – 1 AIP has exited the process due to no response from the author within 30 days.

commented the team.