Apecoin (APE) gains 6% amid red crypto day – sell-off risks intensify

YEREVAN (CoinChapter.com) – Apecoin, the digital asset created in association with popular NFT collections Bored Ape Yacht Club (BAYC), registered a green candle amid ubiquitous declines across the crypto market. As a result, the APE/USD exchange rate clocked at $17.3 in Monday’s European session, after a 6% daily uptrend.

However, APE bulls might not have much time to wave the bullish flag, as the four-hour chart flashed several warnings.

Also read: Apecoin (APE) price jumps nearly 40% on Yugalabs airdrop rumor.

Bearish Apecoin (APE) chart

In detail, Apecoin has done well in the previous week and registered a 55% upside move. However, the bullish price action formed a setup dubbed the Rising Wedge. It features two trendlines with a positive slope. They envelop the price action and drive the price up while lowering the swing.

Also read: ApeCoin jumps 17% in two days on news of Bored Ape movie.

The Rising Wedge predicts a downfall after the digital asset exhausts the pattern. Moreover, the decline could equal the maximal distance between the trendlines, which pins the target price for APE at $14, i.e., almost 18% lower than the current value.

Diversions back the claim.

Moreover, the Apecoin token’s four-hour chart threw other bearish technicals. For example, despite the higher highs of the price action, the trading volumes have been declining since Apr. 19-20 jump. The said deviation forecasts a looming decline.

Additionally, another diversion fuelled the bearish forecast. The relative strength index (RSI; purple graph at the bottom) registered a similar picture.

In detail, the RSI is a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions. Lower highs on the RSI despite the bullish price action also indicate a looming sell-off.

Also read: BAYC’s ApeCoin has slumped over 70% from debut high already.

Based on the factors listed above, Apecoin (APE) might face a near-20% decline in the upcoming sessions.