Is Apecoin Going to Zero? APE Price Plummets 8% as Latest Meme Coin Project Takes All the Limelight
ApeCoin (APE) has tumbled -8% after rejecting from upper-trendline resistance, marking the latest drop in a 9-month cascade – terrified bag-holders are now asking: Is ApeCoin going to zero?
The downside price action for the APE governance token, comes amid wider disarray in the Bored Ape Yacht Club (BYAC) ecosystem – which has seen the value of the once prestigious NFT collection plummet over the past year.
Indeed, looking at BAYC NFT floor price, over the past 3 months, there has been a -78% collapse in floor price from an average of 59.58 ETH to just 26.083 ETH today. And this comes against a backdrop of -49% decrease in trading volumes.
With BAYC’s profitability seemingly depleting by the second, the knock-on impact for APE holders could spell disaster – read on to find out more in APE price analysis.
APE Price Analysis: Is ApeCoin Going to Zero?
Amid the dramatic moves, ApeCoin is currently trading at a market price of $1.163 (representing a 24-hour change of -1.36%).
The downside move comes following a short-lived recovery for ApeCoin, which pushed up +19% from hard-fought consolidation at $1.089 to reclaim the 20DMA and test upper-trendline resistance.
However, the resounding rejection has left price tumbling back to 20DMA support – this now forms a critical level to watch, if APE bulls fail to establish support here – the cascading price action will continue.
The 20DMA has formed a capstone of resistance suppressing upside price moves since August 15, further highlighting the risk posed by yet another drop below this moving average.
As for ApeCoin’s indicators, the RSI is showing a bullish divergence at 42.02, cooling down rapidly from the recent push-up in price.
And the MACD is also displaying bullish divergence at 0.024 – suggesting the momentum is still there to move higher.
Overall then, APE is in a perilous retracement move – if price action falls any further it will once more be trapped by the 20DMA. However, if bulls can consolidate here – technical indicators suggest upside could resume.
This leaves APE with an upside target at higher support around $1.445 (a possible +24.14%).
While downside risk could see APE plummet to $1.017 (a potential -12.63%).
ApeCoin therefore carries a risk: reward ratio of 1.91 – a good entry, characterised by decent upside risk, however, if price action fails to consolidate above the 20DMA then APE will grind lower towards zero.
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