But the token has depreciated by almost 5% in the past 24 hours, and trading at $3.96. This might set a precedent to what can happen in the next few weeks.
NFTs, Macros And What It Means For ApeCoin
Recent events in the NFT space might have an effect on the already dwindling interest in nonfungible tokens. First, Nikhail Gopalani, COO of RTFKT, got his NFT collection phished 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 along with dwindling interest in NFTs will certainly have an effect on APE’s price. But with the token being part of the Bored Ape Yacht Club ecosystem, the effect might be dampened.
Lately, however, the token has been highly correlated with Ethereum which would determine where ApeCoin will go. Although ETH has appreciated in the past few days leading up to the Federal Open Market Committee (FOMC) Meeting Minutes, the U.S. Federal Reserve’s continued hawkish stance would make the broader financial system slip and tumble as fears of an oncoming recession grows.
Any negative market movement would lead to pain in the crypto market, dragging ApeCoin down. This would also lead to capital flight, meaning that cash would exit 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 Tussle
As the days go by, APE investors and traders should be able to breach the $4.19 resistance as a break through this level would give the bulls momentum for higher highs. However, with major headwinds and fear, uncertainty and doubt blocking the path of APE, this resistance might prove difficult to break.
Image: Binance Academy
Short-term, APE holders might see gains as the bulls remain on the market. But with 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 on whether the U.S. central bank would increase interest rates further.
Investors and traders should be monitoring the release of the CPI data and how the broader financial market reacts to it. Any major long or short decisions should be made after these indicators are 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 of this year.
-Featured image: New Scientist