APE is currently pursuing an uncommon ascending triangle reversal breakout. Its profit target is $8.40. ApeCoin ( AP) surged to begin the week, as traders considered Yuga Labs’ decision opening its Otherside metaverse to select users. The token broke out from a technical pattern suggesting a further 45% price rise by September 2022.
APE’s price jumped by nearly 23.5% week to date, reaching $6.12 per token on July 19.
These weekly gains were part of the rally that began on July 16. On the day of APEX’s rally, Yuga Labs hosted 4,300 Otherside gamers for a demo and a tour of its Bored Ape online platform.
This suggests that traders bought APE after using cues from Otherside update. It also serves as a governance token at ApeCoin DAO. This decentralized, autonomous organization (DAO powers the ecosystem that Yuga Labs and other brands have created.
APE price sees a 45% rally
APE has also been driven by the Otherside euphoria to leave a technical set-up called the ascending triangular.
Ascending triangles can be considered continuation patterns. However, there are rare cases when ascending triangles appear at the end a downtrend. This can lead to strong price reversals.
APE’s ascending triangular structure appeared to have formed after the downtrend ended. The token rose by more than 100% after hitting a low of $3.00 locally on June 15 and then breaking above the upper trendline at $5.22 on July 18.
Technical analysis dictates that a breakout from an ascending triangle will push the price north as high as the highest height between the triangle’s upper and lower trendlines. This puts APE at $8.40, an increase of approximately 45% over current levels.
A close below the upper trendline of the triangle could signal a bearish breakdown setup. The profit target is below $3.50.
