- ApeCoin’s performance disappoints investors with high expectations.
- APE fails to follow market’s upward momentum, faces sharp rejection.
- APE holders may encounter decline in token’s value, sellers surpassing buyers.
Investors with high expectations have been disappointed by ApeCoin’s (APE) lackluster performance over the past 90 days. The cryptocurrency, which doubles as the governance and utility token of the Bored Ape Yacht Club [BAYC], has experienced a 27.65% decrease in value during this time.
Although other assets in the market experienced some upward momentum, APE failed to follow suit. Analysis of the 4-hour chart reveals that bulls tried to seize control of the market on June 5th, following a prolonged period of bearish activity.
It was intriguing to note a modest surge in demand, which prompted buyers to drive up the price from $2.83 to $3.20.
Rejected at the peak
Despite its promising upward trajectory, the token ultimately faced a sharp rejection. Even with high volatility, Bollinger Bands (BB) analysis suggests that the asset was not overbought. Instead, the root cause of this setback appears to be dwindling demand.
The recent surge in APE price may have been influenced by its dip to the lower volatility band, settling at $2.83.
It is worth noting that had the $3.20 price breached BB’s upper band, the APE would have been deemed overbought. As such, the sudden price drop could be attributed to savvy investors seizing the rare chance to take quick profits.
Despite the bulls’ valiant attempt to maintain buying pressure at the $2.99 mark, the bears swiftly extinguished their efforts.
During this transitional period, APE holders may encounter a decline in the token’s value. This is due to the Relative Strength Index (RSI) approaching a value of 30 after a brief period of fluctuation between June 5 and 6. However, the current RSI value of 40.31 suggests a reduction in selling pressure.
Fizzling out buyers’ control
Furthermore, the Directional Movement Index (DMI) indicates a prolonged period of APE decline. As of the latest update, the -DMI (orange) stood at 26.63, while the +DMI (blue) dwindled to 18.47. This scenario implies that sellers are currently surpassing buyers in the market.
According to the ADX (red), which measures directional strength, the current reading is 21.82. This indicates that the downward trend is still strong enough to eliminate buyer opportunities unless the indicator reaches or surpasses 25.
In addition to price fluctuations, APE has encountered a less favorable sentiment from market participants. The challenges faced by the token extend beyond mere price action.
As per the latest data from Dune Analytics, the Month-on-Month (MoM), DEX volume has experienced a significant decline since May 2022. This has created a challenging situation for the price to maintain a steady upward trajectory. As a result, more than 95% of token holders have been adversely impacted by this trend.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
