ApeCoin (APE) has experienced a sharp decline of -8% as it rejects upper-trendline resistance, sparking concerns among investors about the future of the token. This recent drop is part of a larger nine-month cascade, leaving bag-holders terrified and questioning whether ApeCoin will ultimately reach zero. The situation is further complicated by the turmoil within the Bored Ape Yacht Club (BYAC) ecosystem. The once prestigious NFT collection has seen its value plummet over the past year. In the last three months alone, the floor price of BAYC NFTs has collapsed by a staggering -78%, from an average of 59.58 ETH to a mere 26.083 ETH today. Additionally, trading volumes have decreased by -49%. The deteriorating profitability of BAYC has ominous implications for ApeCoin, as the cascading effect may spell disaster for its holders.
ApeCoin’s Recent Performance and Critical Level to Watch
Currently trading at a market price of $1.163, ApeCoin has suffered a downward move of -1.36% in the past 24 hours. Prior to this decline, ApeCoin experienced a brief recovery, surging by +19% from its consolidation point at $1.089. The token managed to reclaim the 20DMA and test upper-trendline resistance. However, this rally was short-lived, as the subsequent rejection sent prices tumbling back to the 20DMA support level. The 20DMA has acted as a formidable resistance since August 15, thwarting any significant upside moves. Another drop below this moving average could have dire consequences. A closer look at ApeCoin’s indicators reveals that the RSI is currently showing bullish divergence at 42.02, suggesting a cooling down from the recent upward trend. Additionally, the MACD is displaying bullish divergence at 0.024, indicating that there is still momentum for further upward movement.
Considering the current precarious retracement of ApeCoin, if the price continues to decline, it will once again become trapped by the 20DMA. However, if APE bulls can establish support at this level, technical indicators indicate that an upside move is possible. In such a scenario, ApeCoin’s upside target would be around $1.445, representing a potential gain of +24.14%. On the other hand, if ApeCoin’s downside risk materializes, the token could plummet to $1.017, resulting in a potential loss of -12.63%. As a result, ApeCoin carries a risk-to-reward ratio of 1.91. Despite the potential for decent upside gains, failure to consolidate above the 20DMA could send ApeCoin grinding lower towards zero.
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ApeCoin’s recent decline and the challenges facing the Bored Ape Yacht Club ecosystem raise concerns about the token’s future. However, technical indicators suggest the possibility of an upside move if APE bulls can establish support at the critical 20DMA level. On a different note, Meme Kombat represents an exciting opportunity for gamers, investors, and meme enthusiasts alike. Its innovative platform, commitment to transparency, and attractive tokenomics make it a project worth considering. It is important to remember that investing in cryptocurrency carries inherent risks, and this article should not be considered as financial advice.
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