Apecoin (APE) has been showing strong bearish signs over the past week. The coin is now falling sharply due to widespread weakness in the market. But how far can it actually fall? About that below but first, here are some highlights:
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APE records 3 consecutive days of losses as bears take full control
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The coin is likely below $5 in this bearish cycle
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If the bull is $7. This thesis would be invalid if the price action can proceed above
Data Source: TradingView
Apcoin’s Trajectory and Why $5 Matters
When Apcoin launched a few weeks ago, the coin just went to the moon. At one point it was even trading at around $25. But the expected improvement soon followed. The APE declined sharply, and it struggled to rise above $10 throughout May. This weakness is set to continue till the end of the month.
The APE has actually closed in the red in the last three trading sessions. Today it was down around 7% in intraday trading as well. We expect this bearish trajectory to continue and eventually settle at $5. However, there is still some risk that APE could lose $5 if market sentiment turns more bearish in the short term.
If this happens, we could see a decisive decline towards $2. But the bulls can still save APE from this downtrend if they manage to push the price above $7 before the close of today’s trade.
Long-term outlook for APE
We don’t think Apecoin will return to its high of $25 anytime soon. In fact, most estimates suggest that the coin could stabilize at around $15 this year. But before that happens, app investors will need to deal with a potentially disastrous downtrend.
In fact, the chances of this coin going down at $2 are high. However, this also means that buying opportunities will present themselves for long-term investors.