Cryptocurrency traders are seeing altcoins reaching lows following the continued decline in Bitcoin price. Significant support levels have been lost as investors, worried about further losses, have reduced their risk. But is this a buying opportunity? Is the time right for one of the biggest altcoins?
ApeCoin (APE) Comment
In May, the APE Coin price fell by 20 percent. With the continued decline, the APE price is melting for the fourth month in a row. Has the altcoin that led the metaverse altcoins for most of the past year now reached the bottom? Recent fluctuations in some on-chain metrics point to a possible bullish scenario.
ApeCoin (APE) is the governance token of the famous Bored Ape Yacht Club (BAYC) NFT ecosystem, and the contraction in this space has led to its demise. The late 2021 NFT euphoria has faded considerably, and metaverse, NFT altcoins like APE have also seen their share of apathy. Despite this, a surge in trading activity on the ApeCoin network has increased investors’ optimism for the medium term.
APE Coin Price Prediction
Between April 30 and May 10, APE Daily Active Addresses increased by 100% to 2502. The DAA metric measures the number of unique addresses interacting on a blockchain network. When it starts to increase during a price correction, it is considered a signal that the bearish process can now be reversed.
If Apecoin holders maintain this trajectory, the rise in the APE price forecast could soon gain momentum. On the other hand, investors at a loss are increasingly reluctant to sell. The MVRV data assesses the finances of current token holders to reveal their unrealized losses or profits. The chart below tells us that the data is back to the levels of the March crash.
With MVRV declining to these levels, investors may want to wait until ApeCoin price increases significantly to avoid major losses. This reduction in selling pressure and increase in trading activity may combine to confirm the bullish APE price prediction.
On-chain data suggests that the price may fall to the $3 support level before breaking above $4. Accordingly, the possible drop could be a buying opportunity for APE. Conversely, APE price could make a deeper bottom if it fails to bounce off the $3 support zone. However, the 5,450 investors who bought 1.94 million tokens at this level are likely to defend the support zone. If they fail, $2.84 will be the next target.
