ApeCoin (BOW) market valuation could grow nearly 250% in Q2 2022 as it breaks out of a widely followed classic technical pattern.
APE Price โBull Pennantโ Breakout Is Underway
On April 13, APE price It broke above the upper trend line of what appears to be a โbullish pennantโ chart pattern.
bull pennants They appear when the price consolidates within a triangle-like structure after a strong uptrend. Many traditional analysts consider them to be continuation patterns as they typically result in the price breaking out in the direction of its previous trend.
As a general rule of thumb, traders estimate the upside target of a bull pennant by measuring the size of the previous uptrend, called the "flagpole," and adding it to the breakout point. Applying the same to ApeCoin's ongoing breakout movement shows its potential for its massive upside potential.
Therefore, if the bull pennant structure works as expected, the APE could rise to almost $40 in the second quarter of 2022.
robinhood listing?
ApeCoin's bullish setup comes as it bounces by almost 17% to over $12.50 in two days, amid speculation that Robinhood, a popular retail brokerage firm, would list APE on its trading platform.
Rumors gained momentum after Robinhood aggregate Shiba Inu (SHIB), a meme cryptocurrency inspired by Dogecoin, along with three other altcoins: Polygon (MATIC), solana (SUN) and Composite (COMP.) โ to trade this Tuesday, leading to intraday profits on each asset.
The next crypto to be listed on Robinhood will be $monkey.
I have no doubt about it.
โ David Gokhshtein (@davidgokhshtein) April 12, 2022
However, Robinhood did not confirm any plans to integrate ApeCoin into its services, hinting that APE's price gains since Tuesday could be due to mere speculation. Additionally, its breakout move out of the bullish pennant accompanied lower volumes, suggesting a lack of bullish conviction in the market.
Related: Is the increase in OpenSea volume and top-tier NFT sales an early sign of an NFT bull market?
As a result, the potential for ApeCoin to invalidate its bullish pennant setup cannot be ruled out as long as it breaks through a sequence of resistance levels, as shown in the chart below, with a steady increase in volumes.
For example, APE now sees $13 as its next upside target while holding $11.50 as interim support. Nonetheless, a break below said price floor could see ApeCoin consider $10.25 as its next downside target.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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