Apcoin is down 15% in the past day
Fundamentals surrounding NFTs and the metaverse remain growth drivers
Stochastic Oscillator shows APE in oversold zone
ApeCoin APE/USD is trading at $5.27, down 15% over the past day. Though the reason for the decline is not clear, it can be attributed to the ongoing correction in the market. The drop in the price of bitcoin has sent altcoins into panic territory.
Currently, ApeCoin’s market capitalization at #35 in crypto rankings is below $1.6 billion. The coin is trading well below its all-time high of $26 in April. Despite the significant price drop, APE remains a token to watch in the NFT and Metaverse categories.
Launched in March 2022, APE is the native cryptocurrency powering the Bored Ape Yacht Club metaverse. BAYC is a collection of 10,000 images of apes. In contrast, APE is an alternative ERC-20 standardized token with a supply of 10 billion. The token enjoys strong fundamentals around the rapid growth of the NFT sector.
Growth is largely driven by institutional adoption. Themed NFTs have emerged from large corporations. Designers, musicians and video game companies are also finding this place useful. For this reason, APE can achieve faster speeds in the long run. However, in the short term charts, Apcoin is facing bearish momentum.
APE Re-test $5.2 Support
Technically, as per the daily chart above, Apcoin is facing bearish pressure. The token has retested the $5.2 support. Crossing the current level, the nearest support is set at $4.4. On the other hand, 5.8 is immediate resistance, and 6.8 is long term resistance. However, the signs remain unclear.
Firstly, the APE is trading below the 20-day and 50-day moving averages. We can see some consolidation on the average in case of a trend reversal.
The Stochastic oscillator is below 20, which means that the market is oversold and a reversal could be due. The price has remained oversold for the last four days. Nevertheless, a trend reversal can only be confirmed with a bullish price signal.
ApeCoin has dropped significantly in the last 24 hours. The decline is tied to the overall crypto bearish momentum. The stochastic indicator shows that the coin is in an oversold zone and a reversal could be due. APE buyers should wait for the bearish pressure to subside.