Key Takeaways
On Jan. 13, ApeCoin (APE) price dropped below $1, hinting at an extended correction. But today, the cryptocurrency’s value has climbed to $1.17 after a 6% hike in the last 24 hours.
The last time a similar price movement occurred, it was a false breakout.
This time, it might not be the case, as indicators across several platforms reveal that APE’s price will likely keep rising.
To begin with, CCN analyzed the price-Daily Active Addresses (DAA) divergence, a metric used to assess user participation in a cryptocurrency.
When the price DAA divergence is positive, it indicates strong user engagement with the token, which can support a price increase. On the other hand, a negative divergence suggests low user activity, potentially dragging the price down.
According to Santiment, ApeCoin’s price DAA divergence currently stands at a positive 26.17%. This suggests a high level of successful transactions involving ApeCoin. If this trend persists, APE’s value could rally toward $2 in the short term.
Beyond this, the In/Out of Money Around Price (IOMAP) also aligns with the bullish bias.
The IOMAP classifies addresses based on those making money at the current value, at the breakeven point, and those holding at unrealized losses.
The indicator can spot support and resistance at different price levels with this data. Typically, the higher the volume of tokens at a price range, the stronger the resistance.
According to IntoTheBlock, a strong support exists between $1.08 and $1.14. Nearly 10,000 ApeCoin addresses hold a combined 50 million tokens in unrealized profits at this price range.
This volume exceeds the number of tokens in unrealized losses accumulated between $1.19 and $1.38. Considering this position, ApeCoin’s price could breach the resistance at these levels and cause higher trade.
Meanwhile, the technical outlook of the cryptocurrency falls along the same line as the indicators above.
According to the daily APE/USD chart, the cryptocurrency is trading within a descending triangle, which is typically a bearish pattern.
However, the price at $1.18, is above the 0.236 Fibonacci level, meaning APE has breached a key resistance. Besides that, the Relative Strength Index (RSI) is closing in on the zero signal line.
This indicates that the momentum around APE is switching from bearish to bullish. The rally might continue if the RSI reading breaks above the signal line.
In that scenario, ApeCoin’s price could climb to the 0.786 Fib level at $1.90. On the other hand, if the token drops below the 0.23 Fib line, correction could follow. If that is the case, APE might decline to $0.87.