APE Price Analysis: Why Bears May Keep ApeCoin (APE) Under $3

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APE Price Analysis: Why Bears May Keep ApeCoin (APE) Under $3
  • Buying pressure only lasted a short while as APE got rejected at $3.20.
  • An oversold state at $2.83 ignited the now-reversed price increase.
  • In order to go into full bearish mode, APE might need the ADX to trend higher.

ApeCoin’s (APE) performance in the last 90 days has been nothing short of discouraging for investors with high expectations. The price of the cryptocurrency, which also serves as the governance and utility token of the Bored Ape Yacht Club [BAYC], has decreased by 27.65% within the said period.

Despite some upside moves from other assets in the market, APE declined to join the trend. According to the 4-hour chart, bulls attempted to take control of the market on June 5. This was after a long spell of bearish dominance.

It was also interesting to observe that demand soared slightly, and buyers pushed up the price from $2.83 to $3.20.

Rejected at the peak

However, the token was unable to curtail a sharp rejection at the height of the upward trajectory. And according to Bollinger Bands (BB), it could not be a case of the asset being overbought despite high volatility. Rather, it was a case of dwindling demand.

It is noteworthy to mention that the APE price hitting the lower volatility band at $2.83 could have played a part in the recent rise.

Notably, if the $3.20 price had hit the upper band of the BB, then APE would have been said to be overbought. Therefore, the cause could be linked to quick profit-taking at the unusual opportunity presented.

Although bulls again tried to keep up the buying pressure at $2.99, bears were quick to quench the effort.

Source: TradingView

In the interim, APE holders may need to deal with the token going southwards. This was because the Relative Strength Index (RSI) neared a value of 30 following a short seesaw stint between June 5 and 6. Hence, the current RSI value at 40.31 infers ease in selling pressure.

Fizzling out buyers’ control

Additionally, the Directional Movement Index (DMI) leaned toward an extended period of APE decline. At press time, the -DMI (orange) was 26.63. On the other hand, the +DMI (blue) was down to 18.47. This condition suggests that sellers were outpacing buyers.

However, the ADX (red), used to quantify directional strength, was 21.82. This means that the strength of the downward trend was not yet solid to negate buyers’ opportunity unless the indicator hits or rises above 25.

Source: Trading View

Meanwhile, APE’s challenges have not been limited to price action alone. Rather, market participants’ sentiment toward the token has been gloomy.

According to Dune Analytics, the Month-on-Month (MoM) DEX volume has plunged since May 2022. Thus, this makes it difficult for the price to sustainably increase. And consequently, this has negatively affected over 95% of the token holders.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.