ApeCoin is up double digits in one day
Earnings reflect growing demand for attractively priced assets
APE encounters resistance and further gains will depend on Fed action
The price of ApeCoin APE/USD rose by more than 11% in 24 hours. The surge comes amid a growing appetite for cryptos after the latest slowdowns. Leading cryptocurrencies Bitcoin and Ethereum added 3.23% and 4.30% respectively.
Santiment data indicates that 24-hour gains reflect a “buy the dip” sentiment. The recent drop in price made the tokens attractive, bringing buyers back into the market. But the main question now is: can the gains be sustained?
A Fed rate decision on Wednesday will be a key determinant of whether the market will remain bullish. On the one hand, inflation continues to rise high despite the recent cooling. That has led to speculation that the Fed could aggressively raise interest rates to tame prices. The move will be a bearish trigger for most, if not all, cryptocurrencies.
On the other hand, the Fed is expected to sound less aggressive and favor a gradual rate hike. The course is likely to be taken if the Fed fears an economic collapse if it acts too fast. A less aggressive Fed will be a bull trigger for cryptocurrencies.
APE pumps ahead on FED decision
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Like other cryptocurrencies, APE attracted dip buyers at the bottom of $4.6. The cryptocurrency is trading at $5.8 after a buy-the-dip call.
Source – TradingView
A technical outlook shows that ApeCoin has encountered resistance at $6.0. The cryptocurrency mainly trades the moving averages that amplify a bull case. The MACD indicator is in the bull territory.
We remain hesitant as to whether the Fed’s decision will determine whether APE will sustain earnings. After encountering resistance at $6.0, a correction or consolidation could take place as traders await the Fed’s decision.