ApeCoin’s recent price breakout from a descending triangle pattern has sparked market excitement, signaling potential bullish momentum. However, the path ahead remains uncertain due to critical resistance at $2.70 looming.
Technical indicators suggest room for further gains, with the Relative Strength Index (RSI) standing at 65.94 and a bullish moving average crossover confirming an upward trajectory. On-chain data shows mixed signals, with modest net network growth but neutral “in the money” metrics.
Address activity metrics raise concerns about the ecosystem’s engagement, with new addresses falling by 10.96% over the past seven days and active addresses dropping by 6.58%. This decline in participation could challenge Ape’s ability to sustain its breakout unless investor interest rebounds.
The derivatives market remains cautiously optimistic, with an OI-weighted funding rate of 0.0518%, indicating neutral to slightly bullish sentiment among traders. However, the lack of overwhelming bullish sentiment suggests that traders remain cautious, awaiting stronger catalysts to drive a decisive rally.
Ape’s ability to maintain its bullish trajectory depends on overcoming these challenges, breaking key resistance levels, and fostering a more active and engaged ecosystem.
Source: https://ambcrypto.com/apecoins-bullish-breakout-will-resistance-at-2-70-hold