ApeCoin’s APE market valuation could increase by almost 250% in quarter two of 2022, as it breaks from a well-known, traditional technical pattern.
APE price “bull pennant” breakout underway
APE’s stock price surpassed the upper trendline in what appears to be an “bull pennant chart pattern” on April 13.
Bull pennants are when the price consolidates within a triangle-like structure after a strong uptrend. They are often considered continuation patterns by traditional analysts, as they result in the price moving in the opposite direction to its previous trend.
Bull pennants’ upside target is usually estimated by traders using the size of an uptrend (called “flagpole”) and adding it to their breakout point. The potential for huge upside is shown by ApeCoin’s current breakout move.
If the bull pennant structure works out, APE could reach nearly $40 in Q2/2022.
Robinhood listing?
ApeCoin’s bullish setup is apparent as it rallies by almost 17% to $12.50 within two days amid speculations Robinhood, a popular retail brokerage, might list APE on their trading platform.
After Robinhood added Shiba inu (SHIB), an inspired Dogecoin meme cryptocurrency, to its trading platform, along with three other altcoins — Polygon, Solana, and Compound (COMP), this Tuesday, the rumors gained momentum, leading to intraday gains across all assets.
Robinhood didn’t confirm plans to incorporate ApeCoin in its services. This suggests that APE might have gained from speculation. Its breakout move from the bull pennant was accompanied by lower volumes, which suggests that there is no upside conviction in this market.
ApeCoin’s potential to void its bull pennant arrangement cannot be dismissed as long as it breaks through a series of resistance levels as shown in the chart below with a steady increase in volumes.
APE currently sees $13 as its next upside goal and $11.50 as interim support. ApeCoin could still target $10.25 if it breaks below that price floor.
