Is There A Silver Lining Ahead?

ApeCoin (APE) has skilled a notable hunch all through the second quarter of this yr. Because the digital forex panorama continues to evolve, traders and fanatics have been carefully monitoring the token’s efficiency, eagerly awaiting indicators of a possible turnaround. 

With issues mounting, many are left questioning: is there a silver lining forward for ApeCoin, or is it destined to stay trapped within the grips of a chronic downward development?

Can ApeCoin Bulls Discover Energy Amid The Downtrend?

In latest months, ApeCoin APE has skilled a big decline, with its value plummeting by over 55% from its mid-April swing highs of roughly $4.5 to its present worth of $2.17 on the time of writing, in line with a brand new APE value report.

Though the cryptocurrency rallied by 6.4% previously 24 hours, the 14-day chart reveals a considerable hunch of 27.2%. Including to the bearish sentiment, the trendline resistance has confirmed to be a formidable impediment, hindering any potential upside motion.

Supply: CoinMarketCap

Furthermore, the Relative Energy Index (RSI) has been exhibiting decrease highs since late January, indicating a notable lower in shopping for stress. This decline in demand is additional corroborated by the reducing On Stability Quantity (OBV).

The convergence of those unfavourable indicators has bolstered the management of sellers and raised the opportunity of APE dropping beneath the $2.0 mark. Actually, there’s hypothesis that the cryptocurrency might probably attain $1.0, its preliminary opening value on the Binance change.

Protecting An Eye On Bitcoin

Regardless of the prevailing downtrend, there’s a glimmer of hope for bullish traders as Bitcoin has now rebounded above the $27,000 threshold. At CoinMarketCap, BTC is buying and selling at $28,792.51.

ApeCoin value motion within the final seven days. Supply: CoinMarketCap

Bitcoin’s value ascent can have an effect on APE’s value trajectory based mostly on latest knowledge. Actually, it’s been noticed that as Bitcoin value climbs, so do the opposite crypto property. 

However, the end result stays unsure, leaving many to wonder if ApeCoin can discover a ray of hope amidst the prevailing bearish sentiment.

Bitcoin exhibiting its resilience on the $28K territory. Chart: TradingView.com

In the meantime, all through the month of Could, APE witnessed a rise in its provide on exchanges, indicating a continued development of token holders shifting their property to exchanges for the aim of promoting.

ApeCoin provide on exchanges and every day lively addresses. Supply: Santiment

This surge in provide has additional solidified the management of sellers over APE, exacerbating the downward stress on the cryptocurrency.

Alternatively, there was a notable decline within the provide of APE exterior of exchanges throughout the identical interval.

This lower in provide signifies a diminishing curiosity in APE amongst traders who’re selecting to carry onto their tokens slightly than actively buying and selling or promoting them.

Featured picture from Andrew Milligan/AP