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In the second quarter of 2022, the market value of ApeCoin (APE) could rise by almost 250% as it breaks out of a tracked classic technical pattern.
On April 13, the APE price broke above the upper trend line, forming a bullish pennant chart pattern.
Bullish pennants appear when the price consolidates inside a triangular structure after a strong uptrend. Many traditional analysts view them as continuation patterns as they usually result in price breaking the direction of its previous trend.
Typically, traders estimate the upside target of a bullish pennant by measuring the size of the previous uptrend, called a “flagpole”, and adding it to the breakout point. Applying the same to ApeCoin’s ongoing breakout shows its potential for significant growth.
If the bullish pennant structure works, APE could rise to almost $40 in Q2 2022. The rise will also be helped by a listing on the Robinhood app, which is already rumored in the crypto space.
Rumors intensified after Robinhood added Shiba Inu (SHIB), a meme-cryptocurrency, along with three other altcoins, Polygon (MATIC), Solana (SOL), and Compound (COMP), on April 12.
The next cryptocurrency to be added to the Robinhood app will be APE. I don’t doubt it.
However, Robinhood did not confirm plans to integrate ApeCoin into their services, hinting that the APE price increase since April 1 could be the result of simple speculation. In addition, the breakout from the bullish pennant was accompanied by lower volumes, indicating a lack of market confidence in growth.
As a result, the possibility cannot be ruled out that ApeCoin will invalidate the bullish pennant setup if it breaks a sequence of resistance levels, as shown in the chart below, with a steady increase in volumes.
APE is now looking at $13 as its next target, with $11.50 as intermediate support. However, a break below the indicated price low could see ApeCoin plunge to $10.25.
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