Is ApeCoin a buy after retesting $4.3 support?

The ApeCoin DAO airdropped millions of APE tokens to NFT owners in March this year during the token’s launch. The airdrop went to BAYC, Mutant Ape Yacht Club, and Bored Ape Kennel Club NFT holders. The token distribution and the speculations around it drove it to as high as $27 in April.

The surge was also attributed to the anticipated NFT sales of the BAYC metaverse game ‘Otherside’. However, at the moment, the enthusiasm seems to have faded away. APE is currently trading at $4.28 after a 5.77% decline in the past day and a 10.39% drop in the past week.

Overall, ApeCoin is down 83.8%, with a market capitalization of $1.29 million and #43 in market ranking. The current circulating supply is 299,531,250 from a hard cap of 1 billion. 

ApeCoin is a governance token that is used as a utility token. The token allows holders to be part of a decentralized ecosystem of a Web3 community. The native APE token started trading on March 17, 2022. The token remains bearish despite attracting notable partnerships from major industry players like Animoca Brands. However, as the Web3 economy evolves into the metaverse, projections point to a comeback in the token.

APE retests $4.3 support

The 4-hour technical chart below shows that APE has retested the $4.3 price support. The MACD line has crossed the signal line from above to below, showing that the momentum is bearish. However, the RSI reading is at the oversold zone and presents a potential trend reversal. If the trend reverses, $5.3 will be the next level to watch. Clearance above the resistance could welcome an uptrend.

Source: TradingView

Summary

While the speculation around NFTs is believed to have been behind the surge in the value of APE, the long-term value seems intact. The technical indicators show mixed signals, with the MACD showing bearish momentum while the RSI seems to have bottomed. For the holders, the trends in the metaverse and NFTs will inform the value of ApeCoin.