ApeCoin prediction as token retest key support amid bearish pressure

• ApeCoin plunged 15% over the past day

• NFT and metaverse fundamentals continue to drive growth

• Stochastic Oscillator Shows APE In Oversold Zone

ApeCoin APE/USD has plunged 15% over the past day, trading at $5.27. The cause of the decline remains unclear, but could be attributed to the ongoing market correction. Altcoins plunged into unrest territory as the price of Bitcoin plummeted.

Today, ApeCoin’s market capitalization has plummeted to $1.6 billion, placing it 35th in the cryptocurrency rankings. The token is trading well below its April all-time high of $26. Despite the significant price drop, APE remains a token to watch in the NFT and Metaverse categories.

Launched in March 2022, APE is the native cryptocurrency powering the Bored Ape Yacht Club metaverse. BAYC is his collection of 10,000 images of apes. In contrast, APE is a fungible ERC-20 standard token with a supply of 10 billion. The token derives strong fundamentals around the rapid growth of the NFT sector.

Growth is primarily driven by institutional recruitment. There is an emergence of thematic NFTs from big companies. Designers, musicians and video game companies also find the space useful. As such, APE could gain some bullish momentum in the long term. However, on the short-term chart, ApeCoin faces bearish momentum.

APE retest $5.2 support

Source: Trading View

Technically, ApeCoin faces bearish pressure as per the daily chart above. Token retested for $5.2 support. A break above the current levels will set the nearest support at $4.4. Conversely, 5.8 is immediate resistance and 6.8 is long-term resistance. However, the signal remains unknown.

First, APE is trading below the 20- and 50-day moving averages. If the trend reverses, we might see some consolidation on average.

The Stochastic Oscillator is below 20. This means the market is oversold and may reverse. The price has remained oversold for the past four days. Nevertheless, a trend reversal can only be confirmed with a bullish price signal.

in conclusion

ApeCoin has plummeted significantly over the past 24 hours. This decline is related to the overall crypto bearish momentum. A stochastic indicator shows that the token is in an oversold zone and may reverse. APE buyers should wait for the bear pressure to end.