Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
- ApeCoin has a robust larger timeframe downtrend
- The current rally was not sustainable as a consequence of an absence of demand for the token
ApeCoin [APE] famous a robust bounce from the $1.1 assist stage final week, however these positive factors had been worn out inside three days. The current losses got here after Bitcoin’s [BTC] rejection from $28.5k and was in step with APE’s larger timeframe downtrend.
Learn ApeCoin’s [APE] Worth Prediction 2023-24
A current evaluation of ApeCoin’s worth motion by AMBCrypto revealed that the $1.09 was an HTF assist stage. Nevertheless, the rise within the Market Worth to Realized Worth (MVRV) ratio was pointed to as proof that we may see a drop in costs, which came to visit the previous 48 hours.
The retracement again to the $1.1 assist highlighted bullish fragility
Supply: APE/USDT on TradingView
On the time of writing the market buildings of ApeCoin on each the four-hour chart and the one-day chart had been bearish. A transfer above $1.37 would have flipped the each day bullish however the rejection at $1.3 put a swift finish to these hopes.
The drop in APE costs was accompanied by a sudden slide southward on the On-Stability Quantity (OBV). This showcased the sturdy promoting stress. It revealed that holders had been eager to guide earnings or restrict their losses after the current rally.
The Relative Power Index (RSI) was additionally under impartial 50 and famous a shift within the development in favor of the bears. APE’s drop from $1.3 to $1.09 was used to plot a set of Fibonacci retracement ranges (pale yellow). It underlined the $1.2-$1.26 as a zone the place short-sellers can look to enter the market focusing on the southward Fib extension ranges.
Coinalyze information throws into the highlight the depth of the bearish stress
Supply: Coinalyze
On 2 October, when the costs peaked at $1.3, the Open Curiosity sat at $68.15 million. Since then the OI has slid to $54 million. Quick-term bulls taking earnings was a possible issue that contributed to the falling OI. Bulls from final week pressured to shut as costs turned towards them was one other.
Lifelike or not, right here’s APE’s market cap in BTC’s phrases
The spot Cumulative Quantity Delta (CVD) has been in decline since mid-September and was a key piece of proof that confirmed that the rally was not borne by real demand. Till this development adjustments within the short-term, bulls will be cautious of opening lengthy positions.