Since Monday, the price of Apecoin has enjoyed a two-day gaining run.
However, the APE price retreats and is reversing Tuesday's gains.
A Friday negative weekly closing that breaches $5 to the downside might put the market in danger.
What's up with Apecoin ?
ApeCoin's price (1) has been printing solid gains of over 6% since Monday morning. Traders that respected the $5 marker are seeing a nice return (2). As the week advances, it looks time to get out of that trade and book those profits. However, dark clouds are gathering with more worrying headlines on the wires that point to another leg of escalation in geopolitical risk.
What happens Now?
The two-day relief bounce in the price of Apecoin (3) is about to end. On Monday, bulls sprang onto the scene and quickly acquired several assets at low prices within or close to a significant support level. As markets become uneasy following missile drills by the US and South Korea in reaction to North Korea's missile launch, that trade appears to end.
The US is conducting joint military drills with South Korea, and although APE pricing and markets have become Used to North Korean missiles, this is the first time one has come this near to Japan and even overshot it. It sends a message to the markets that the US will react when North Korea does something Drastic.
What would the Outcomes of these measures?
This could result in downward pressure on price movement for ApeCoin. In such a scenario, expect a decline to $5 by the end of the week, with a potential break lower below $4.27 when the monthly support level and the low from September come back into play.
On the other hand, a more optimistic outlook might view this as only a brief episode of profit-taking. In this case, once the 55-day Simple Moving Average is tested, look for a recovery to $5.34. The price objective would increase near $5.80 in the event of an upward break.
