ApeCoin price declined to two-week lows on Wednesday after losing 2.9 percent of its value to trade at 1.13 at the time of writing. Furthermore, the coin is on course to extend its losing streak to the fourth consecutive day, underlining a seller-controlled market.
Altcoins coins have generally performed better than Bitcoin in the face of a general decline in the wider crypto market. However, ApeCoin is one of the exceptions to the rule. Bitcoin, the market bellwether, lost 14.9% of its value in April and is down by 11.7% in the last week. APE, on the other hand has lost far more than BTC, having lost 41.8% in April and is down by 8.8% in the last week. This does not augur well for APE.
On the other hand, however, one could argue that decoupling from Bitcoin could be good for the meme coin, especially considering that the Bitcoin halving event has not catalyzed a price rally so far. In fact, BTC price just broke below the $60k psychological level, which could trigger a prolonged decline. ApeCoin’s decline could also be attributed to a general disintegration of the NFT market.
It is worth remembering that APE came to the market with much buzz due to its links to the Bored Ape Yacht Club (BAYC). Therefore, it was primarily associated with NFTs, much as it is a tradeable coin like any other crypto asset. Therefore, the steep decline in the NFT market has taken away a key foundation upon which APE was built. Yuga Labs, the developer of BAYC, this week announced that it will be laying off some of its workers amidst a harsh business environment. Furthermore, a vote by the Ape Coin DAO in early April approving .APE Top Level Domain (TLD) registration has failed to gain traction.
Technical analysis
My ApeCoin price prediction analysis signals that the sellers are currently in control, with the pivot at 1.151. The downside could persist if resistance remains at that level, with support at 1.121. A continuation of control by the sellers will likely break the support and potentially build the momentum to test 1.099. Conversely, a move above 1.151 will swing control to the buyers, with the next resistance likely to be encountered at 1.171. An extension of the control by the buyers will break the resistance, thereby invalidating the downside narrative and potentially pushing APE to test 1.196.
