ApeCoin has returned 15% in a week but should you buy it?

ApeCoin DAO unlocked 25 million APE tokens for the launch contributors

The ApeCoin was launched in March amid community hype

APE has added 25% in the past one week 

When ApeCoin APE/USD was launched with a lot of hype in March 2022, investors expected a lot. The token was launched to power the NFT ecosystem of the Bored Ape Yacht Club. APE attracted a real following, an aspect that gave a lot of popularity to BAYC. Since then, the hype around ApeCoin and BAYC has subsided. However, the ApeCoin DAO had a deal with its community, which could boost its token.

APE has gained by more than 15% in the past week. That happened after, on September 17, the treasury unlocked 25 million APE tokens. The tokens were reserved for the “launch contributors” of the project. 

There is still a twist. The release of new tokens was expected to add bearish pressure to APE. That’s because it increases the supply of the tokens, which are fixed at one billion. The recent pump after the release implies that investors had priced the token release. The release may, therefore, have rekindled the hype around APE, boosting the price.

ApeCoin meets resistance amid weekly gains

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Source – TradingView

Looking at the technical side, APE has met resistance at $6.0. The MACD indicator remains in the bullish zone. The token has also reclaimed the 20-day and 50-day MA. In all aspects, APE is bullish amid improved sentiment after the token release.

Concluding thoughts

We think it is not the right time to buy ApeCoin despite the latest gains. A resistance zone at $6.0 is likely to send the token lower. Investors should watch the level around $5.1 for a potential reversal.

The post ApeCoin has returned 15% in a week but should you buy it? appeared first on CoinJournal.