ApeCoin: Will January see the end of APE’s recovery?

ApeCoin (APE) has been on the path to recovery for the past two months. After CoinGeckoThe token gained over 13% in the past month, ending the year with others on the spot winner.

But the token has lost almost 5% in value over the past 24 hours and is trading at $3.96. This could set a precedent for what may happen in the coming weeks.

NFTsmacros and what it means for ApeCoin

Recent events in the NFT space could impact the already dwindling interest in non-fungible tokens. First, Nikhail Gopalani, COO of RTFKTgot his NFT collection phished by him. According to publicly available information, the total amount stolen was $173,000.

the next Hack happened on January 4th when CryptoNovo lost over $618,000 worth of NFTs. This along with fades Interest in NFTs will certainly affect the price of APE. However, since the token is part of the Bored Ape Yacht Club ecosystem, the effect could be muted.

Recently, however, the token has been heavily correlated Ethereum which would determine where ApeCoin will go. although ETH has appreciated in the last few days in advance Federal Open Market Committee (FOMC) meeting minutes.the continued hawkish stance of the US Federal Reserve would cause the entire financial system to slide and falter fears an impending recession is growing.

Any negative market movement would cause pain in the crypto market and drag ApeCoin lower. This would also lead to capital flight, meaning cash exiting the cryptocurrency market and going into safe haven assets such as cryptocurrencies gold or government bonds.

Crypto Total Market Cap at $775 Billion on Daily Chart | Chart: TradingView.com

Bears and bulls in constant battle

As the days go by, APE investors and traders should be able to Resistance of $4.19 as a break of this level would give the bulls momentum for higher highs. However, with major headwinds and the fear, uncertainty and doubt blocking APE’s path, this resistance could prove difficult to break.

Image: Binance Academy

In the short-term, APE holders could turn a profit as the bulls remain in the market. But with that said, investors and traders should watch the release of the Consumer Price Index (CPI) dates next week. This indicator would provide a clear picture of whether the US Federal Reserve would hike rates further.

Any increase in the interest rate would cause this Shares and other riskier investments to fall, pushing APE towards the $3.422 support area.

Image: CoinCodex

Investors and traders should keep an eye on the release of the CPI data and the reaction of the broader financial market to it. All major long or short decisions should be made after observing these indicators.

Meanwhile, the latest CoinCodex ApeCoin price prediction suggests that the value of ApeCoin will increase by 7.90% to reach $4.28 by Jan. 11 this year.

-Featured image: New Scientist