ApeCoin made headlines as the NFT token broke above its declining trend. Bulls pushed ApeCoin’s price higher, implying a bullish resurgence. The trend reversal can be attributed to three key factors.
America’s most popular rappers Snoop Dogg and Eminem dropped a new music video at Ape Fest ‘22. The video features Bored Ape Yacht Club (BAYC) NFTs and gained instant popularity in the Web3 and NFT communities. The annual fest of BAYC brought musicians Roots, LCD Soundsystem, Haim, Lil Baby, and Lil Wayne, among others, to perform.
The celebrity rappers see this as the beginning of a new media trend, opening up the ability for token holders to use the image of their Bored Apes for creative or business endeavors. ApeCoin’s strategy was to facilitate exclusive endeavors for BAYC holders and this has helped increase the appeal of the NFT token to users who haven’t purchased the collectible yet.
As the ApeCoin price breaks out of its two-month-long downtrend, it becomes clear that the NFT token is no longer under the control of bears. There is a bullish divergence in the ApeCoin price chart and a 20% uptick is likely in the NFT token.
However, if ApeCoin produces a four-hour candlestick close below $4.28, it is likely that the NFT token will produce a lower low and push the price to $3.78. The $3.78 level is identified as a stable support for the NFT token. Therefore, a close above $4.28 is key to ApeCoin’s bullish breakout.
ApeCoin’s upside is capped at $5 if the NFT token fails to cross the resistance at this level. ApeCoin’s price rally beyond $5 could push it to the $5.50 target, and this is where the uptrend is capped.
ApeCoin Perpetual Futures price chart (Source: TradingView)
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Source: Cryptocurrency - investing.com
