- Summary:
- The ApeChain launch still provides Ape Coin price with tailwinds, but Bitcoin has taken a more prominent role in defining market direction.
Ape Coin price declined sharply on Tuesday, reflecting a market-wide bear trend underpinned by Bitcoin’s rejection near the psychological $70k mark. The crypto coin traded at $1.467 at the time of writing, down by 6.9 percent to effectively erase Monday’s gains of 5.2 percent. The coin spiked two days ago on the heels of news of the launch of ApeChain, by ApeCoin issuer, Yuga Labs.
The ApeChain launch allows Ape Coin holders to transfer the coin across Arbitrum and Ethereum, and also supports staking. This has incentivised investors to own the coin to earn passive yields on their locked APE. The coin is down by 9 percent year-to-date, reflecting its struggles prior to the launch of its native chain. However, it has gained 89 percent in the last week, pointing to a bullish sentiment.
The existential risk facing APE
The downside to Ape Coin price is the market-wide dissipation of the recent bullish sentiment. Bitcoin’s rejection near the $70k mark has infused a fear sentiment in the market. A break past that barrier could have raised the prospect of a post-halving rally, potentially accompanied by a break past the BTC price all-time high price of $73,737 set in March. Therefore, Ape coin performance price will likely stay subdued if Bitcoin breaks below the next critical support at $65k.
Also, a key limiting factor for Ape Coin is the underperformance of the Non Fungible Tokens (NFT) sector. Ape Coin issuer, Yuga Labs, built its brand around NFT hype of 2021-2022, spearheaded by the eye-watering sales by the Bored Ape Yatch Club. However, the sector has since lost its footing, with its value dropping by more than 90 percent from its peak. That means APE’s success is more inclined to imitate the wider crypto coins market than the NFT market.
APE coin forecast
The momentum on APE coin price signals control by the sellers as the asset trades below the pivot ark at 1.490. With the sellers in control, the first support will likely come at 1.461. However, a stronger downside momentum will break below that level to test 1.437.
Conversely, the buyers will have the upper hand if Ape coin price breaks above 1.490. If that happens, initial resistance could come at 1.513, but an extended bullishness could enable a break above that level to test the next barrier at 1.530. Meanwhile, the downward narrative would be invalid.
