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- ApeCoin halted long-term losses with a 15% rebound at the $1 price level.
- However, the increase in supply on the stock exchanges could trigger a new wave of selling.
from ApeCoin [APE] The bearish downtrend bottomed out after the bulls found support at $1. This came after a period of sideways price action in September.
Read ApeCoins [APE] Price forecast 2023-2024
The 15% recovery at the $1 support level left ApeCoin trading at $1.25 at the time of writing. It remains to be seen whether buyers can engineer a sustainable turnaround due to APE’s heavily bearish market structure.
Can APE reverse losses?
Source: APE/USDT on Trading View
A sharp drop in NFT interest rates and market conditions caused the price of APE to drop from $6.4 to $1 in 2023 alone. However, the recent price action suggested an opportunity for bulls to reverse losses.
The influx of strong buying pressure into the $1 price zone caused the Relative Strength Index (RSI) to move from the lower range to the higher range. The RSI briefly reached the overbought zone before making a slight pullback.
Together with the RSI, the On Balance Volume (OBV) increased from less than a million to 32 million in the last five days. This meant a huge increase in transaction volume, with the bulls coming back to life.
As such, buyers can target gains of $1.4 to $1.6. However, continued bullish momentum for ApeCoin requires the $1.7 resistance to reverse to support.
Is this a short pullback before another price drop?
Source: Coinglass
How much are 1,10,100 APEs worth today?
On-chain data from Santiment revealed that sellers could reverse the narrative of the recent bullish rebound. While the 30d market value/realized value (MVRV) ratio was positive at 4.35%, supply on the exchanges also showed an upward trend.
This indicated that holders were making short-term profits and could quickly cash in on those gains, which could stifle the bullish recovery and take ApeCoin back to the $1 range.