- The price of Apecoin falls after its deviation from the downtrend line.
- At the most crucial moment, APE noticed an increase in the headwind.
- With investor sentiment subdued by central banks, expect further declines.
Apecoin (APE) price was about to finally break through the red downtrend line that hung over price action for most of 2022. Unfortunately, at such a critical juncture, central banks stepped in this week with a stark warning that undermines any support for risky assets. APE has collapsed along with several other cryptocurrency pairs and may fall before buyers can attract buyers again.
APE throws the ball to the main stage
Apecoin price was in good shape at the beginning of the week, and the inflation rate in the US caused a massive rise in stocks and cryptocurrencies on Tuesday. Hopes arose that a “soft landing” and “goldilocks” scenario was achievable in the world’s largest economy. The same central bank’s 180-degree turn on Wednesday couldn’t have been more contrary to what the markets were expecting. The dire warnings and inconvenient truth were delivered to markets that only received news later in the week with a massive sell-off on Friday after the European Central Bank and the Bank of England painted a similar picture.
So the EPA can still fight and challenge the central bank; three was simply too much for investors. The price action has collapsed and will continue to fall over the weekend and next week. With a solid pullback into a bearish triangle, the only outcome appears to be a 28% decline in search of support at the bottom of the triangle around $3.06. As long as that support holds up, all is well, but once it breaks, keep an eye out for $2.00.
APE/USD weekly chart
There could still be upside as the dust settles this weekend and the markets move into a calmer environment. With less data and almost no speakers for next and next week, some benefits could be achieved. Traders who are already planning a preliminary position for 2023 and creating new positions can buy APE and partially restore it to around $4.00.