ApeCoin (APE) has been on the road to recovery since the last two months. According to , the token gained over 13% in the past month, ending the year on the spot with other .
But the token has depreciated by almost 5% in the past 24 hours, and trading at $3.96. This might set a precedent to what can happen in the next few weeks.
NFTs, Macros And What It Means For ApeCoin
Recent events in the NFT space might have an effect on the already dwindling interest in nonfungible tokens. First, Nikhail Gopalani, COO of , got his NFT collection from him. According to publicly available information, the total stolen was $173,000.
The hack happened on January 4, when lost over $618,000 worth of NFTs. This along with interest in NFTs will certainly have an effect on APE’s price. But with the token being part of the Bored Ape Yacht Club ecosystem, the effect might be dampened.
Lately, however, the token has been highly correlated with Ethereum which would determine where ApeCoin will go. Although has appreciated in the past few days leading up to the , the U.S. Federal Reserve’s continued hawkish stance would make the broader financial system slip and tumble as of an oncoming recession grows.
Any negative market movement would lead to pain in the crypto market, dragging ApeCoin down. This would also lead to capital flight, meaning that cash would exit the cryptocurrency market and enter safe-haven assets like or .
Crypto total market cap at $775 billion on the daily chart | Chart:
Bears And Bulls In Constant Tussle
As the days go by, APE investors and traders should be able to breach the $4.19 resistance as a break through this level would give the bulls momentum for higher highs. However, with major headwinds and fear, uncertainty and doubt blocking the path of APE, this resistance might prove difficult to break.
Image: Binance Academy
Short-term, APE holders might see gains as the bulls remain on the market. But with that said, investors and traders should watch the release of the data next week. This indicator would provide a clear picture on whether the U.S. central bank would increase interest rates further.
Any increase in interest rate would lead to the and other to drop, pushing APE towards the $3.422 support range.
Image: CoinCodex
Investors and traders should be monitoring the release of the CPI data and how the broader financial market reacts to it. Any major long or short decisions should be made after these indicators are observed.
Meanwhile, the current ApeCoin price prediction made by CoinCodex suggests that the value of ApeCoin will increase by 7.90% and reach $4.28 by January 11 of this year.
-Featured image: New Scientist