ApeCoin (APE) has been on the road to recovery for the past two months. According to CoinGeckothe token has gained more than 13% in the past month, ending the year on the spot with other winners.
But the token has depreciated by nearly 5% in the past 24 hours and is trading at $3.96.. This could set a precedent for what may happen in the coming weeks.
NFT, macros and what it means for ApeCoin
Recent events in the NFT space could have an effect on the already waning interest in non-fungible tokens. First of all, Nikhail Gopalani, COO of RTFKTgot her NFT collection hooked from him. According to publicly available information, the total stolen was $173,000.
The next hack happened on January 4, when CryptoNovo lost over $618,000 worth of NFTs. This with decreases interest in NFTs will certainly have an effect on the price of APE. But with the token being part of the Bored Ape Yacht Club ecosystem, the effect could be mitigated.
Lately, however, the token has been strongly correlated with Ethereum, which would determine where ApeCoin will go. Even though ETH appreciated during the last days preceding the Federal Open Market Committee (FOMC) Meeting Minutesthe continued hawkish stance of the US Federal Reserve would cause the entire financial system to skid and crash as fears of an impending recession is developing.
Any negative market movement would lead to difficulties in the crypto market, dragging ApeCoin down. It would also lead to capital flight, which means that cash would leave the cryptocurrency market and enter safe-haven assets like gold or government bonds.
Crypto total market cap at $775 billion on the daily chart | Chart: TradingView.com
Bears and bulls in constant battle
As the days go by, APE investors and traders should be able to clear the resistance at $4.19 as a breakout of this level would give the bulls momentum for higher highs. However, with major headwinds and fear, uncertainty and doubt blocking the path of the EPA, this resistance may prove difficult to break.
Image: Binance Academy
Image: Binance AcademyIn the short term, APE holders could see gains as bulls remain in the market. But that said, investors and traders should watch the release of the Consumer Price Index (CPI) data next week. This indicator would provide a clear picture if the US central bank would raise interest rates further.
Any increase in interest rates would result in the actions and other riskier assets drop, pushing APE towards the $3.422 support range.
Image: CoinCodex
Investors and traders should monitor the release of CPI data and how the broader financial market reacts to it. All major decisions long or short must be made after these indicators have been 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 this year.
– Featured Image: New Scientist
