ApeCoin (APE) has skilled a notable droop all through the second quarter of this yr. Because the digital foreign money panorama continues to evolve, traders and fanatics have been intently monitoring the token’s efficiency, eagerly awaiting indicators of a possible turnaround.
With issues mounting, many are left questioning: is there a silver lining forward for ApeCoin, or is it destined to stay trapped within the grips of a chronic downward pattern?
Can ApeCoin Bulls Discover Energy Amid The Downtrend?
In current months, ApeCoin APE has skilled a major decline, with its value plummeting by over 55% from its mid-April swing highs of roughly $4.5 to its present worth of $2.17 on the time of writing, based on a brand new APE value report.
Though the cryptocurrency rallied by 6.4% prior to now 24 hours, the 14-day chart reveals a considerable droop of 27.2%. Including to the bearish sentiment, the trendline resistance has confirmed to be a formidable impediment, hindering any potential upside motion.
Supply: CoinMarketCap
Furthermore, the Relative Energy Index (RSI) has been exhibiting decrease highs since late January, indicating a notable lower in shopping for stress. This decline in demand is additional corroborated by the lowering On Stability Quantity (OBV).
The convergence of those adverse indicators has bolstered the management of sellers and raised the potential for APE dropping under the $2.0 mark. In truth, there may be hypothesis that the cryptocurrency might probably attain $1.0, its preliminary opening value on the Binance change.
Conserving An Eye On Bitcoin
Regardless of the prevailing downtrend, there’s a glimmer of hope for bullish traders as Bitcoin has now rebounded above the $27,000 threshold. At CoinMarketCap, BTC is buying and selling at $28,792.51.
ApeCoin value motion within the final seven days. Supply: CoinMarketCap
Bitcoin’s value ascent can have an effect on APE’s value trajectory based mostly on current information. In truth, it’s been noticed that as Bitcoin value climbs, so do the opposite crypto property.
However, the result stays unsure, leaving many to wonder if ApeCoin can discover a ray of hope amidst the prevailing bearish sentiment.
Bitcoin exhibiting its resilience on the $28K territory. Chart: TradingView.com
In the meantime, all through the month of Could, APE witnessed a rise in its provide on exchanges, indicating a continued pattern of token holders shifting their property to exchanges for the aim of promoting.
ApeCoin provide on exchanges and every day energetic addresses. Supply: Santiment
This surge in provide has additional solidified the management of sellers over APE, exacerbating the downward stress on the cryptocurrency.
Alternatively, there was a notable decline within the provide of APE outdoors of exchanges throughout the identical interval.
This lower in provide signifies a diminishing curiosity in APE amongst traders who’re selecting to carry onto their tokens reasonably than actively buying and selling or promoting them.
Featured picture from Andrew Milligan/AP
