Apecoin breaks below crucial price level – time for a free fall?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Apecoin hit new lows as selling pressure intensified.
- Buyers could spring a surprise based on short-term accumulation trend.
Apecoin [APE] hit a new low of $1.49 as the gaming token’s price continued its swift descent. Despite the best efforts of bulls to prop up the price from the $1.72 support level in early August, APE ultimately caved to the overall bearish sentiment in the market.
Realistic or not, here’s APE’s market cap in BTC’s terms
A 33% price decline between 15 August and 17 August saw bears smash the $1.72 support, leaving APE exposed to a price free-fall which could lead it back to the depths of $1—a far cry from its mega heights of $23 in April 2022.
Bulls have no fight left in them
The sustained selling pressure on APE has curtailed bullish efforts at a price reversal. With buyers losing one support level after another, bears have reigned supreme since April 2023.
While the lower timeframe (4H) price action showed a lot of sideways price action, the higher timeframe (daily) price action showed that Apecoin’s continued implosion could see it hit $1 in the coming days/weeks.
The series of lower highs and lower lows on the downtrend signaled that Apecoin is likely to retest the new resistance at $1.72 before continuing its free fall.
Any hopes of a price reversal will be highly dependent on the market sentiment shifting bullish, especially if Bitcoin [BTC] can reclaim the $28 – $30k price zone in the long term.
Otherwise, Apecoin holders can expect a continuation of this free fall with no bottom in sight. The Relative Strength Index’s (RSI) recent attempt at a reversal was met with a swift return to the oversold zone, highlighting the selling pressure.
Similarly, the drop in interest for APE saw the On Balance Volume (OBV) register a 70 million decline in trading volume over the past week.
Could long-term holders be up to a surprise move?
Data from Santiment highlighted a surprising metric. The Market Value to Realized Value (MVRV) ratio for monthly (30d) and quarterly (90d) holders of Apecoin showed severe losses of -15.90 and -25.49% respectively.
How much are 1,10,100 APEs worth today?
However, the 90d mean coin age has been on the rise since 17 August, hinting at an accumulation of APE at cheaper prices by long-term holders in anticipation of a sustained price rebound.
This glimmer of hope suggested a potential change in price dynamics if overall market conditions improve.