The end of the year is approaching and it is time to review everything that has happened during the year. Biggest falls in the markets, marked by events such as the invasion of Ukraine, the progressive increases in production costs and consequently inflation and closer to our sector, the bankruptcies of major players in the crypto scene such as FTX or LUNA.
As a result of this situation, it is difficult to find tokens approaching the end of the year with a positive result. A clear example of this are the two tokens with the largest market capitalization, $BTC and $ETH, which have accumulated a result close to -60%.
But if we broaden the search, we can find some tokens that have been listed during this year and that despite being weighed down by the falls manage to maintain a positive annual result, as is the case of $APE, the Ape governance token that carries a result of +200% since its listing on Binance in March this year.
ApeCoin is an ERC-20 utility and governance token used within the APE ecosystem. ApeCoin holders make governance decisions through the decentralized framework that controls the ApeCoin DAO and vote on how the ApeCoin DAO Ecosystem Fund should be used.
ApeCoin DAO aims to build and maintain the APE ecosystem in a fair and inclusive manner by providing an infrastructure for ApeCoin holders to collaborate through open, permissionless governance processes.
ApeCoin also provides access to certain parts of the Ecosystem that would otherwise be unavailable, such as exclusive games and services.
If we focus on the evolution of its price, we can see how on the day of its launch it generated x25, reaching $26 after starting trading above $1.
After the initial Pump & Dump, the price has generated a bearish guideline that has led it to trade between $2.80 and $4 in recent weeks. Being a token with little history, it is convenient to focus on a shorter period to be able to draw conclusions, so I show you the 4h graph in which we can more easily see the relevant areas.
In the chart we can still detect this downtrend, but we can also see a sideways zone at the lows of $2.80-$3. This area can act as support if the price tests it again, but if it manages to break it, we could see another downward impulse in search of new lows.
Although this scenario must be taken into account in the event of a continuation of the downtrend at the beginning of the year, we can also consider other more optimistic options if we see strength in this support zone and higher highs than those shown in the chart are generated. For this situation to be contemplated, the $4.50 zone, which acted as resistance during the month of December after breaking lower in early November, would have to be broken.
If this short-term resistance were to be broken to the upside, the next relevant area would be at $7.80 and this would be the price to beat in order to begin to contemplate a scenario of a change in the main trend.
Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows analysis and investment tools, and how they help us in our operations when making decisions.
Merry Christmas!