Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Major technical indicators on the daily chart were negative.
- Supply on exchanges soared, highlighting seller leverage.
ApeCoin [APE] could end Q2 2023 in the red if negative price charts indicators and on-chain metrics continue. The token has been falling in value since late January, falling from its high of $6.42 and reaching key support levels.
Read ApeCoin [APE] Price prediction 2023-24
Bitcoin [BTC] has maintained the $26,000 price zone since June 16. BTC’s signals could hold back APE’s further decline for a while; a slip below $26k could expose APE to more selling pressure.
More than 50% drop in value – what now?
Source: APE/USDT on TradingView
Based on the price range tool, APE is down more than 55% as measured from its mid-April swing highs of around $4.5 and $2.02 at the time of writing. In addition, the trendline resistance (cyan) has been a critical roadblock against any likely upward movement.
In addition, the RSI (Relative Strength Index) has been making lower highs since late January, suggesting a significant drop in buying pressure. Demand for APE also fell, as evidenced by the falling OBV (On Balance Volume).
The above negative indicators strengthened sellers’ scrutiny and the likelihood of APE falling below $2.0. A drop to $1.0, the initial opening price for APE on the Binance exchange, could be in the offing.
However, bulls could be hopeful if BTC crosses $27k. But they need to clear the trendline resistance at $3, which corresponds to the 38.2% Fib level and a key swing low in October 2022.
The supply at fairs increased
Source: Sentiment
How many Worth 1.10.100 APEs today?
APE recorded an increase in supply on exchanges from May, reiterating that more tokens have moved to exchanges to be unloaded. It is a distribution trend where APE is under the control of sellers.
Conversely, declining off-exchange supply shows declining interest in APE over the same period. Active addresses remain muted, aside from the increase in sales volume on June 10. Therefore, sellers are likely to exert influence for a while unless BTC crosses $27,000.