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With the apes showing weakness, bears swoop in to claw out some gains. According to Coingecko, APE price has lost its aggressiveness since the start of February, with the biggest losses being observed in the weekly time frame at 7%. This suggests that the bears have a significant grip in the ApeCoin market.
However, recent price movements in the crypto market put this thesis into question. Market leaders Bitcoin and Ethereum has remained stable in their current price levels, indicating that the bulls are somewhat gaining ground after the broader market slump earlier this month.
Investors, however, are concerned about several developments that further threaten the token’s future price movement.
Bears Done APE-ing Around … Or, Are They?
Sentiment around the token largely revolved around a recent transfer of tokens to an exchange. Reports show that an address transferred over 436,173 APE tokens to Binance. At the token’s current price of $5.17, the transfer is worth nearly $2.4 million. However, this may not be the work of the bears.
On February 17, the Bored Ape Yacht Club followed through its vesting period and released 7.3 million APE tokens to the market which inevitably put pressure on the token’s price. As of press time, the token released is worth $37.7 million.
The bears, however, might find strength as Pauly Yox, founder of NotNarvaLabs, shared that there are rumors that the US Securities and Exchange Commission will charge Yuga Labs with securities fraud.
Im hearing alot of rumors that the @SECGov is about to charge @yugalabs & @apecoin with securities fraud.
— PAULY (@Pauly0x) February 19, 2023
If the rumors are true, we might see a stronger bear pressure in the markets. The only thing holding back any further bearish movement is the recent price movement of major cryptocurrencies. Bitcoin is up nearly a percent today, with Ethereum gaining 2.5% in the same time frame.
Bulls May Find Support At This Level
After a slight rebound yesterday, the token is currently trading on a red candle as of writing. This might be a sign that the bears still have enough momentum to test the token’s current support at $5.063.
This support level can also leverage APE’s correlation with both BTC and ETH. As it currently stands, the significant correlation between APE and the major cryptos may give the bulls an extra leg up.
Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com
However, investors and traders should remain vigilant in the coming days. A bearish break at $5.063 could trigger a return to $4.4 and $4.2, both of which are supports with no real strength to them. APE bulls should focus on defending the token’s current support.