Quick Summary:
- Fundamentally, ApeCoin is drifting downwards due to the FUD of the SEC probe of Yuga Labs.
- ApeCoin, technically, is losing momentum and volume which signals another bearish wave.
Why ApeCoin is skidding down:
ApeCoin is facing a downtrend after a report stated that SEC is investigating Yuga Labs. ApeCoin $APE, the native token of Bored Ape Yacht club has declined by 2.1% in the last 24 hours. Originally designed to aid the BAYC in the web3 journey, ApeCoin has faced numerous challenges since its inception.
Mainly focusing on NFTs, Yuga Labs has emerged as one of the foremost giants in web3. They also have hinted at integrating NFTs characters into web3 gaming. On Tuesday, the price plunged down by 10% after news that says SEC is investigating Yuga Labs.
ApeCoin: the Technical Analysis
The direction of the market is usually decided by the supreme, Bitcoin. If it goes down it pulls the entire crypto market with it and vice versa. Right now, bitcoin is nearing the bottom of the current cycle’s low. This is why all the altcoins, including ApeCoin, are down. Even though there’s a slight price recovery, this might just be a pullback.
In today’s price drop, ApeCoin slid to a low of $4.18 and recovered back to $4.6 which it’s trading right now. ApeCoin has a local resistance just above the current price and if it breaks above, it can get trapped in the shaded range zone for some time. That will be the best-case scenario, the bulls are praying for.
However, ApeCoin is very likely to move downwards, it can be either from the current price level or from the range zone resistance level. The support level for ApeCoin is at $3, the price level of June 15. This price might not hold longer as RSI will be oversold, furthermore, ApeCoin has got a strong community.
Conclusion:
The major chunk of ApeCoin was distributed among the BAYC holders as a reward for holding the NFTs. The coin is held mostly by one of the most influential communities and that is the reason why it might not slump too much. Even if the selling pressure rises due to the retail traders, the coin will quickly recover back.
This analysis is just for educational purposes and not financial advice. DYOR
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
