$5.6 Breakout May Trigger Bullish Reversal pattern

The Apecoin (APE) recovery set-up reveals the formation of a cup and handles pattern. Following this pattern, the coin price should charge onto the overhead resistance of $5.67, aiming for a bullish breakthrough. This breakout should accelerate buying pressure and allow a recovery rally to $7.34

Key points: 

The APE price needs to rise 18% before triggering the bullish reversal pattern.
The 20 day EMA flipped into a viable support level.
The intraday trading volume in Apecoin is $293 Million, indicating an 80% gain.

Source-Tradingview

Following a U-shaped recovery in June, the 21% pullback in the APE/USDT pair revealed the shape of a cup and handle pattern. Furthermore, on July 1st, the altcoin rebounded from a flipped support of $4.26, forming the handle support for coin buyers.

The post-pullback rally has surged the APE price by 12%, which currently trades at the $4.8 mark. The sustained buying should continue the bullish rally 18% higher to $5.67 neckline resistance.

In response to this bullish reversal pattern, the APE price should breach this overhead resistance to obtain a directional bias. The $5.67 breakout may propel the coin price 30% higher to the $7.34 mark.

On a contrary note, the coin buyer’s failure to surpass the mentioned resistance would indicate a lack of bullish momentum, which may initiate a range-bound rally within the $5.67 and $3.11 barriers.

Technical Indicator

EMAs: after nearly two months, the coin price breached the dynamic resistance of the 20 day EMA line. This EMA provided significant support along with the $2.4 mark during the recent pullback and should bolster the $5.6 breakout.

Vortex indicator: the ongoing recovery in APE price may prevent a possible bearish crossover between the VI+ and VI- slopes, indicating the bullish momentum persists.

Resistance levels: $5.67 and $6.47
Support levels: $4.2 and $3.11