Since January 22, the price of ApeCoin [APE] has been between $5.386 and $6,000. But when BTC went up to $23.8K, it broke out of that range and went to $6.410.
But BTC fell below $23,800, which caused APE to go down. At the time this article was written, APE was worth $6.110 and flashing red, which meant that bears were in charge. But if BTC stays in the range of $23K, APE may also stay in this range.
Both the On Balance Volume (OBV) and the Relative Strength Index (RSI) went down on the three-hour chart. This means that the number of trades has gone down, which makes buying pressure go down.
APE’s price action zone could be $6.410–$5.900
But the RSI was 61, which is in the bullish range and shows that the bulls could take control at any time. Because of this, APE may move between $5.900 and $6.410, especially if BTC stays around $23K. If BTC goes above $24,000, APE could break above $6.410 and test $6.793 again.
On the other hand, bears could push APE into the demand zone at $5.900. However, a break below the zone’s lower boundary of $5.695 would render the preceding bias invalid. The decline could come to an end at the 50-period EMA (exponential moving average), or $5.386.
Short-term accumulation occurred despite negative APE sentiment
At the time of publication, APE’s Exchange Flow Balance was negative (-4833) according to data from Santiment. If the Exchange Flow Balance is negative, it means that more APE went out of exchanges than came in, which is a sign of short-term accumulation. To put it another way, APE’s price decline provided discounted buying opportunities for other investors.
But a drop in trading volume, as shown by a drop in the number of active hourly addresses, could make it harder for prices to turn around or recover quickly. So, it seems likely that the price will stay between $5.900 and $6.410.
Also, at the time of press, the weighted sentiment of APE was negative. But negative sentiment did not stop the recent price rise, which may not be important for the short-term direction of price action.
So, investors should keep an eye on what happens to the price of BTC to predict what will happen to the price of APE.