-
ApeCoin had added 20% in a week
-
Yuga Labs NFTs had great success last year
-
The cryptocurrency has overcome resistance at $4.2 but faces a correction
As most cryptocurrencies generate relief rallies, investors could turn to ApeCoin (APE) for some quick bucks. Since the onset of Ape staking, bullish investors have been trying to break a crucial barrier at $4.2 unsuccessfully. However, the recent price action looks positive as APE trades at $4.66, breaking past the resistance zone. Should this be viewed as a bullish signal?
According to CoinMarketCap data, ApeCoin has added 20% in a week. The cryptocurrency started the week on a higher note, jumping by an intraday of 12% On Monday. The gains in APE come amid the latest cryptocurrency news showing growing success for ApeCoin’s NFTs. The New Year update showed that Otherdeeds NFTs amassed $49.9 million in loyalties, the best performing in 2022. Other popular NFTs from Yuga Labs, BAYC, and MAYC, generated over $32.3 and $25.6 million in royalties, respectively.
Considering how popular Yuga Labs NFTs are, the latest news could have excited APE buyers. That partly explains the recent recoveries in APE price.
ApeCoin breaking past the $4.2 resistance
From the technical outlook, APE trades slightly above the resistance of $4.2. The cryptocurrency has also overcome a descending channel that kept it bearish. The cryptocurrency has maintained a system of higher highs and higher lows since bottoming around $2.8. The MACD indicator has shifted above the neutral zone, affirming a bullish momentum. However, the reading on the RSI shows that APE is overbought.
What could occur next for APE?
The latest surge and indicators are positive for APE price. We expect the strengths to be sustained in the short and medium term, potentially reaching the next resistance at or above $5.1.
Nonetheless, with the high RSI reading, APE could be due for a correction before continuing higher. A possible price retreat could see APE back to $4.2, now a support, or short-term ascending trendline. Investors should buy APE on a correction.