Is ApeCoin Still a Bargain?

The ApeCoin (APE) cryptocurrency has recently demonstrated considerable strength, with its value surging by nearly 40% in February.

This increase occurred as Bitcoin hovered just below the critical $60,000 threshold.

Given this context, one might question whether ApeCoin's valuation at $1.9 represents an undervalued opportunity for cryptocurrency investors.

Weekly time frame

APEUSD - 1 Week Time Frame

When examining the weekly time frame, two primary targets emerge as critical for analysis: the Buy-side Liquidity level and the Sell-side Imbalance, along with the Buy-side Inefficiency zone (SIBI), which is highlighted on the chart as the blue zone.

For market participants looking to exit their positions profitably on the buy side, it is essential to find a counterparty willing to purchase the volume in question.

This scenario is likely to occur at the Buy-side Liquidity level, where retail traders, previously in selling positions, have placed their Buy-stop orders above this level.

Additionally, for the market price to reach equilibrium, it must address the imbalance in the SIBI zone.

Potential entry point

APEUSD - 1 Day Time Frame

The price has recently surpassed a previous lower high, which, according to structural analysis theory, suggests a corrective movement may follow.

This movement could present a more advantageous entry point for traders, improving the Risk Reward Ratio (RRR). On the daily timeframe, three key zones have been identified for executing potential trades.

For more accurate trade timing, traders are advised to monitor lower timeframes.

However, it is crucial to recognize that any correction should not be impulsive. An impulsive correction would indicate a shift in market control back to sellers, thereby invalidating potential buy positions.