The price of Apecoin (APE), an ERC-20 token with a focus on governance and utility, has experienced a significant decline since its all-time high. On July 7, the price reached a new all-time low of $1.83, marking a staggering 93% decrease from its peak. This article explores the current state of Apecoin, analyzes price indicators, and examines the correlation between APE and the Bored Ape Yacht Club (BAYC) NFT market.
Apecoin’s Downward Spiral:
Following its initial launch, Apecoin witnessed a sharp increase in price, but its fortunes took a turn for the worse starting from April 2022. The downtrend persisted, leading to the recent milestone of a new all-time low. If the downward trajectory continues, the next potential support level is projected to be around $1.60. This support level is determined using the 1.27 external Fibonacci retracement of the previous price surge.
Lack of Bullish Reversal Signs:
The prevailing price action and indicator readings for Apecoin offer no indication of a bullish trend reversal. In fact, the absence of positive signals suggests that the downward trend might persist. The descending resistance line, which has been in effect since February 2023, is expected to act as a potential barrier in the event of a temporary price reversal. However, a confirmed breakout from this resistance line would be required to validate any potential bullish reversal.
Daily RSI Signals Bearish Trend:
The daily Relative Strength Index (RSI), a widely used momentum indicator, serves as a tool for traders to assess whether a market is overbought or oversold. In the case of Apecoin, the RSI reading is below 50 and continues to decrease, signaling a bearish trend. Typically, an RSI reading above 50 and an upward trend would favor bullish sentiment, but the current scenario favors the bears.
BAYC NFTs’ Price Decline:
The price decline of Apecoin is not an isolated event. The Bored Ape Yacht Club (BAYC) NFT market, which is closely tied to the APE ecosystem, has also experienced a rapid fall in prices. This decline is in line with the broader trend observed in the NFT market.
BAYC’s Floor Price and Support Levels:
Since its peak of nearly 150 ETH in March 2021, the floor price of BAYC NFTs has plummeted below 30 ETH, marking an 80% decrease. This drop has pushed the floor price below the 30 ETH level for the first time since November 2021. While some support exists around the 27 ETH region, created by the lows observed between August and October 2021, a breakdown from this level could potentially drive the price even lower, reaching the all-time low region below 10 ETH.
Conclusion:
The Apecoin (APE) price has continued its downward trajectory, hitting a new all-time low, while showing no signs of a bullish reversal. Similarly, the Bored Ape Yacht Club (BAYC) NFT market has witnessed a sharp decline in prices, reflecting the broader trend in the NFT space. Traders and investors should closely monitor the indicators and support levels to gauge potential future movements.
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