As altcoin markets continue to face challenges, ApeCoin (APE) has been hit hard, falling below the 20DMA and experiencing a tumultuous rejection from trendline resistance. This has left many BAYC bagholders worried about the future of ApeCoin, wondering if it will eventually reach zero. ApeCoin has had a catastrophic year, losing a staggering 93.5% since its all-time high in April 2022. This decline has led to APE price being stuck in a tight descendant trading channel throughout the summer.
Adding to the concerns is the collapse of the technical structure in the NFT ecosystem. A fleeting recovery in BAYC floor price quickly gave way to collapsing technical structure, creating a double-whammy of bleak prospects for ApeCoin. Currently, ApeCoin is trading at a current price of $1.82, representing a 24-hour change of -1.35%. The recent rejection from a zone of converged resistance between the descendant upper trendline and $2 price level at $2.07 has caused ApeCoin to retrace -14.6%.
ApeCoin seemed to be making a recovery when it experienced an impressive 2-week rally, with APE price soaring by 22.5% after bouncing off lower trendline support. On August 12, APE appeared to regain supportive footing from the 20DMA, and with strong support from BAYC bulls, the technical structure seemed to be in good form with 3 days of consolidation above this level. However, the sudden drop in BAYC floor price on August 13 triggered APE’s rejection from resistance, resulting in the initial 10% fall.
A Glimmer of Hope?
Despite the bleak short-term outlook, ApeCoin’s key indicators provide some reasons to be optimistic. The RSI has cooled off significantly during the recent downside move, dropping from an overbought 60 to an oversold 41. This suggests that ApeCoin might currently be undervalued. The MACD also supports a bullish outlook, with bullish divergence remaining following two weeks of impressive buy pressure and upside moves. Overall, ApeCoin has an attractive risk-to-reward ratio of 1.86, with an upside target at $2.085 (+14.18%) and a downside target at $1.85 (-7.61%).
Despite the promising risk-to-reward ratio, it is clear that downside momentum has a strong grip on ApeCoin’s technical structure. While APE is not likely to reach zero in the near future, downside moves are expected in the short term. This has led many ApeCoin bagholders, exhausted by months of witnessing their assets lose value, to explore other options such as participating in popular DEX launch meme coin presales to reclaim profits.
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