Over the past two months, the price of ApeCoin (APE) has seen a sustained recovery on the daily chart. This bullish rally has formed a rising parallel channel pattern and as a result, the APE price has doubled in value since November 2022.
According to CoinGecko, the price of the Bored Apes token has appreciated by 43% in the last seven days. With that, the APE registers the highest appreciation of this period, second only to the APT, which registered 131%.
However, in theory, this pattern is known as a bearish continuation pattern, which can intensify selling pressure after the support trendline breaks. That is, the recent high may indicate a trap for traders who bet on buying the APE.
EPA analysis. Source: tradingView.
That said, the bulls took a break from the trendline of the patterns. However, they are still struggling to deliver yet another valuation rally.
In a strong bullish scenario, a bullish breakout of the pattern’s resistance trendline will undermine this bearish thesis and increase buying pressure.
In this regard, the price of APE has given a huge boost to the resistance trend line of the pattern on the 21st of January. At the time, this move offered an entry opportunity for traders who pulled away from the correction.
This breakout was supposed to trigger a significant rally, but instead, the APE price is moving sideways, struggling to break above $6. .
The token currently trades at the $6.08 mark and has shown multiple price rejection candles above $6 over the past five days. These rejection candles signal the exhaustion of bullish momentum and the ability of buyers to sustain higher prices.
Therefore, the daily performance this Thursday (26) is essential to define the future of the cryptocurrency. If selling pressure persists, the coin price will likely break the bull trend line and validate the previous breakout as a bull trap.
Such a breakout will encourage longer corrections and could see the price drop back to $4.47. On the other hand, traders looking for a long entry opportunity should wait for a daily candle closing above $6. In short, if the cryptocurrency price holds at the current value until the end of the day, the APE can continue with its strong uptrend.