Can ApeCoin price squeeze to $6 after an explosive start?
- ApeCoin price has rallied 27% after breaking out of a falling wedge formation on September 9.
- APE has restarted its ascent and eyes a retest of $6 to fill the imbalance.
- A daily candlestick close below $4.28 will invalidate the bullish thesis for APE.
ApeCoin price has been on a massive uptrend while some altcoins are struggling to break higher. The recent run-up in APE comes after its breakout from a bullish setup. This run-up could extend a little higher so it can fill the imbalance to the upside.
ApeCoin price running on fumes but with motivation
ApeCoin price formed three lower lows and two lower highs, creating a falling wedge pattern between mid-August and early September. Although the setup forecasted an 11% upswing to $5.12, APE exploded on September 9 and rallied roughly 30% in the next three days or less.
As a result, ApeCoin price hit both the targets at $5.12 and $5.50 mentioned in the previous publication. After creating a local top at $5.81, APE retraced 10% and formed a base, allowing buyers to recuperate.
The comeback from this pullback has allowed ApeCoin price to rally 10% over the last 12 hours and is currently hovering around $5.75. An extension of this move will likely retest the $6 psychological level and fill the inefficiency known as the Fair Value Gap (FVG).
This level is where APE will form a local top and prepare for a potential retracement, but market conditions will determine where ApeCoin price goes from there.
APE/USDT 12-hour chart
On the other hand, if ApeCoin price fails to produce a higher high and retests $6, it will indicate that there is not enough bullish momentum. In such a case, APE is likely to retrace again to recuperate its strength.
If APE produces a daily candlestick close below the $5.23 swing low, it will create a lower low and invalidate the bullish thesis. This development could see ApeCoin price crash to $5 and $4.95 support levels.