ApeCoin (APE) has undergone a pointy restoration after falling to its lowest stage in two months. However its sturdy correlation with Bitcoin (BTC) and U.S. equities amid macro dangers suggests extra losses could possibly be in retailer.
APE rebounds after 80% losses in two weeks
APE rebounded by almost 45% to $7.30 on Could 12. The upside retracement transfer got here after APE dropped circa 81% to $5 on Could 11, from its document excessive close to $27.50, established on April 28.
The seesaw worth motion mirrored related risky strikes elsewhere within the crypto market, led by the chaos round TerraUSD (UST) — an “algorithmic stablecoin” whose worth plunged to 23 cents earlier this week, and the Federal Reserve’s hawkish response to rising inflation.
In the meantime, the correlation coefficient between ApeCoin and Bitcoin is now round 0.90, suggesting that it is buying and selling almost in tandem with BTC, which is testing multi-year lows.
Useless cat bounce?
ApeCoin’s rebound occurred close to what seems to be a robust technical help stage.
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Notably, APE is holding above $5.82, which coincides with the 0.786 Fib line of the Fibonacci retracement graph sketched from the $0.97-swing low to the $23.65-swing excessive. In the meantime, the token’s every day relative energy index’s studying is simply above its ‘oversold’ threshold stage of 30 — a purchase sign.
Due to this fact, a rebound transfer from the $5.82-support might have APE take a look at $9.63 (the 0.618 Fib line) as its near-term upside goal.
Conversely, an prolonged breakdown beneath the help would threat crashing the APE/USD pair into unchartered worth territory, confirming that its retracement transfer was a mere lifeless cat bounce.
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