ApeCoin (APE) Price Plunges to All-Time Low, but Bullish Turnaround Likely
Key Takeaways
- APE hit an all-time low of $0.42 on April 2 amid a 65% drop, mainly due to a lack of demand and selling pressure.
- On-chain metrics show a positive price-DAA divergence, signaling rising user engagement and a potential uptrend.
- The MVRV ratio is -15.57 %, historically indicating that the bottom is near, suggesting a potential price bounce.
- Interested in buying or selling APECOIN APE? Read our review of the best exchanges to buy and sell APECOIN APE.
ApeCoin (APE), the utility token of the APE ecosystem, plummeted to an all-time low of $0.42 on April 2. This decline came after the cryptocurrency’s price registered a 65% decrease in the last 90 days.
According to CCN’s findings, APE experienced this correction after failing to attract notable demand. Instead, the token kept facing intense selling pressure.
However, according to on-chain data and other indicators, this all-time low could be APE’s bottom. But what are the likely targets?
ApeCoin Flashes Buy Signal
As of this writing, ApeCoin’s price has bounced slightly from its all-time low of $0.44. Amid this slight rebound, Santiment data shows that the Price-Daily Active Addresses (DAA) divergence has turned positive.
The price DAA divergence is an on-chain metric that shows the potential impact of user engagement on the price. When the divergence drops to the negative region, it means low network activity and flashes a sell signal.
On the other hand, a favorable price DAA divergence indicates rising user participation, which is also a buy signal. As of this writing, ApeCoin’s price DAA divergence stood at 18.05%.
Given the conditions above, ApeCoin’s price will likely show a sustained uptrend if network activity improves.
History Shows It’s at the Bottom
Apart from the metric above, the Market Value to Realized Value (MVRV) ratio also shows that APE’s bottom could be in. The MVRV ratio shows if a cryptocurrency has hit the market top or bottom.
The highly positive ratio indicates a high level of unrealized profits, marking the top could be close. A negative reading, on the other hand, signals that the bottom could be near.
As of this writing, APE’s 30-day MVRV ratio is -15.57%. Historically, when the ratio is between -22% and -11%, ApeCoin’s price bounces; therefore, if history rhymes with the current trend, APE will likely keep trading higher.
APE Price Analysis: Falling Wedge Breakout Likely
Looking at it from a technical perspective, CCN observed that APE’s decline has led to the formation of a falling wedge, a bullish reversal chart pattern.
It appears when the price action creates two converging trendlines: one connecting the lower highs and the other connecting the lower lows. As seen below, ApeCoin’s price appears ready to retest at $0.48.
If validated, APE’s value might climb toward $0.83, where the 0.236 Fibonacci level positions. This value might climb as high as $1 in a highly bullish scenario.
However, if buying pressure fails to rise, ApeCoin might fail to move toward the value above.
In that case, APE’s price might drop to a new all-time low, possibly below $0.40.
ApeCoin (APE) Rally Poised to Continue According to These 3 Indicators
