2022 has not been a positive year for cryptocurrency investors. After all, since the beginning of the year, there have been constant bearish cycles in the crypto market.
BTC, for example, has lost more than 50% of its value since its all-time high. Additionally, some digital assets have lost up to 98% since their all-time high. Not to mention the bankruptcy of UST and LUNA.
The same has been happening with one of the cryptocurrencies that surprised the market at its launch, ApeCoin. After surpassing $20, the token now displays a bearish chart. What’s more, the asset is likely to see a drop towards the $5.00 target in the near future.
ApeCoin will fall
This is the opinion of analyst Tony M. who does not believe in a short-term recovery for ApeCoin. According to him, the brand established at US$ 5 has to act as a support. If not, the token will drop even further and could go as low as $2.
“ApeCoin price is still following technical macros which predict a target of $2.00. The bears are suppressing the APE price. After all, the bulls are failing to hold support at the $7.00 level and there is little likelihood that they will also be able to sustain a next support in the $5.00 zone if market conditions persist,” he said.
In this regard, he pointed out that the price of ApeCoin is now 40% below some key metrics. At the same time, the bears broke the support level of buyers on the Relative Strength Index for the first time since the initial sell-off on May 8.
“This critical evidence, accompanied by the new descending channel forming, provides further confluence for an APE Price of $5.00 that has to be held on tight to avoid further declines,” he pointed out.
Finally, he stated that the safest signal for an uptrend rally will only be a breach at $11.50.
“If the bulls can break through this barrier level, the ApeCoin price could continue to climb to new all-time highs at $31.00, resulting in a 380% increase from the current ApeCoin price. But this is highly unlikely in the short term.”