ApeCoin [APE] recently bounced off the $0.553 support level, giving new hope to the bulls. At the time of writing, APE is trading at $0.722, facing immediate resistance at $0.80. However, the question remains: Can the buyers sustain the momentum to break the key resistance levels?

Buyers regain momentum

The daily chart of ApeCoin recently showed an “expanding rising wedge,” indicating increasing buying pressure. This pattern typically indicates high volatility with potential for both upside and downside.

The 20-day and 50-day EMAs (currently around $0.736) continue to act as important resistance points, preventing ApeCoin from entering a sustainable uptrend.

A close above these levels could spark a strong recovery, potentially targeting the $0.86 resistance before testing the 200-day EMA at $0.95.

APE’s 20-day and 50-day EMAs are sloping down but are likely to be tested, suggesting a pivotal moment for the coin. A breakout above the moving lines could confirm a trend reversal and provide the bulls with the strength needed to challenge higher resistance zones.

Meanwhile, the RSI hovers at 47, suggesting a relatively neutral stance at the time of writing. An immediate move above 50 could indicate a shift in sentiment towards the upside.

Conversely, a drop to 30 would reinforce the current bearish pressure.

Levels to Watch

The $0.553 level remains a key support level. If sellers can push the price below this level, APE could face further downside risks.

A breakout from the “rising expanding wedge” structure could trigger a drop back to $0.553 or lower.

On the upside, the $0.8 resistance level is aligned with the upper line of the wedge pattern, and a strong bounce from this point could suggest a pattern-like uptrend in the coming sessions.

Derivatives Data and Market Sentiment

According to derivatives data, APE's open interest fell 3.04% to $29.94 million, indicating a decline in trading activity. However, volume increased 8.49% to $68.65 million, indicating renewed interest in APE.

The long/short ratio on Binance (2.9017) and OKX (3.56) exchanges also showed a largely bullish sentiment among investors.

It is worth noting that top traders on Binance are significantly long, with a long/short ratio of 3,095 (accounts) and 1,3669 (positions). This suggests that while the overall market sentiment may be cautious, top traders remain bullish on APE’s recovery.

Investors should pay attention to the “expanding wedge” structure, which could identify the next big move.

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