The APE price rises amid speculation that Robinhood will list ApeCoin. As it breaks out of a widely-followed, traditional technical pattern, ApeCoin’s (APE) market cap might rise by about 250 percent in the second quarter of 2022.
APE pricing is breaking out of a “bull pennant” pattern
On April 13, the price of APE broke above the upper trendline of a chart pattern that seems to be a “bull pennant.” Following a strong rise, bull pennants form when the price consolidates inside a triangle-like shape. Many traditional analysts regard them as continuation patterns, because they usually result in the price breaking out in the same direction as the prior trend.
Traders typically calculate a bull pennant’s upside goal by multiplying the size of the previous upswing, known as the “flagpole,” by the breakout point. Applying the same logic to ApeCoin’s current breakout move reveals its huge upside potential.
As a result, if the bull pennant structure works out, APE might reach approximately $40 in Q2 2022.
Is there a Robinhood listing?
ApeCoin appears to be in a bullish position, as it has risen about 17% in two days to over $12.50, amid rumours that Robinhood, a popular retail brokerage firm, may list APE on its trading platform.
The rumours gained traction after Robinhood launched Shiba Inu (SHIB), a Dogecoin-inspired joke cryptocurrency, to its trading platform alongside three other altcoins — Polygon (MATIC), Solana (SOL), and Compound (COMP) — on Tuesday, resulting in intraday rises for all three assets.
The next crypto to be listed on Robinhood is going to be $APE.
I have no doubt about it.
— David Gokhshtein (@davidgokhshtein) April 12, 2022
Robinhood, on the other hand, has not confirmed any plans to integrate ApeCoin into its services, raising the possibility that APE’s price improvements since Tuesday are merely speculation. Furthermore, the market’s breakout move out of the bull pennant was accompanied by reduced volumes, indicating a lack of upside conviction.
As a result, if ApeCoin breaks over a series of resistance levels, as illustrated in the chart below, with a sustained rise in volumes, it has the ability to invalidate its bull pennant formation.
For example, APE currently sees $13 as its next upside goal, with $11.50 acting as a temporary support. However, if ApeCoin breaks through the indicated price floor, the next downside target may be $10.25.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.