The once popular ApeCoin (APE) has been in a sell-off since the crypto bear market started, according to CoinMarketCap.
After reaching its peak of $27.50 on April 25, 2022, APE posted six red weekly candles and now looks to set another weekly red candle. During this time, the price of APE has dropped from its peak to its current level of around $5.4553, which is an 83.4% drop.
Price of APE continues to fall (Source: Tradingview)
Looking at the daily chart for APE/USDT, the price downfall continues for APE. Furthermore, the 9 EMA is positioned below the 20 EMA, which is a bearish flag. Another bearish flag is the RSI in oversold territory; the RSI line is below the RSI SMA line. However, the RSI line is sloped positively at the moment.
Possible reasons for the ongoing APE sell-off could be attributed to the fact that the NFT space has lost its high level of associated hype. Seeing that APE is a coin representing the APE ecosystem like Bored Ape Yacht Club and Mutant Apes, which offer little amounts of utility compared to other products in the crypto space, investors may be moving on to crypto coins with more utility.
In addition, investors may be adjusting their portfolio allocation in this bear market. Given that APE has been on the decline for the last number of weeks, investors may be opting for coins that are more stable in price while this bear market plays out.
If the price of APE is unable to break past the 9 EMA on the daily chart, then we could see the price of APE drop even more over the coming days.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.
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Source: Cryptocurrency - investing.com
