ApeCoin, Solana Rebuild Bullish Hopes, But Is It Sustainable?

    • ApeCoin may nurture a 42% breakout if the triangle’s X-axis resistance comes out of the way.
    • SOL reactivates uptrend to $60 but a confluence barrier at $56.6 threatens reversal to $42.

    Buyers of ApeCoin and Solana seemed to be taking the bull by the horns during this week’s second trading day. The latter made a minor swing to $8.78 after affirming support at $7.5. SOL, on the other hand, defended relatively higher support at $52 and resumed the uptrend towards $60. The bullish camps in both ecosystems appear to have made a comeback but certain key barriers may delay the awaited ascend to higher levels.

    SOL At Crossroads

    SOL has embraced support at $40 and has recoiled within the confines of an ascending channel. In the previous analysis, SOL stalled within a whisker of $60, occasioned by the 50 Simple Moving Average (SMA). As mentioned before, support at $52 came in handy and guided bulls into the limelight.

    The key indicators rallying behind this bullish outlook are the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). A buy signal from the MACD continues to encourage buyers to join the market. The RSI, on the other hand, reveals that the odds favor Solana’s anticipated recovery.

    SOL/USD Four-Hour Chart

    ApeCoin, Solana Match North In Unison But These Caveats Still Exist
    Tradingview chart: SOL/USD

    Nonetheless, SOL is not entirely immune to the bears’ impact due to the possibility of a bull flag pattern. The pattern’s middle boundary and the 50 SMA form a confluence resistance, which may absorb the buying pressure behind SOL; thus delaying the upswing.

    At the same time, declines may intensify if SOL closes the day below the lower boundary. As shown on the chart, the down leg is likely to stretch to $42 before buyers attempt another significant recovery.

    ApeCoin’s 42% Breakout At Risk

    Apecoin’s price sits on top of the 50 SMA support as bulls focus on a 42% rally to $13.5. Recovery in the last few days saw the token print an ascending triangle pattern, hinting at the massive breakout.

    However, this bullish move is unlikely to come easy, especially with the resistance at the X-axis. Moreover, if support at the 50 SMA crumbles, pressure may mount towards the ascending trendline.

    APE/USD Four-Hour Chart

    ApeCoin, Solana Match North In Unison But These Caveats Still Exist
    Tradingview chart: APE/USD

    Meanwhile, the most crucial support lies at $7.5 but in case declines are rendered unstoppable, the $6-level will come in handy. On the brighter side, a consolidation period may take place between $7.5 and $9.5 (x-axis) before ApeCoin affirms the breakout to $13.5.

    John Isige
    John is a cryptocurrency technical analyst, who looks at micro, macro and fundamental factors affecting market trends.

    Latest articles


    Subscribe to our newsletter to get the latest market analysis and news.

    Related articles