Apecoin Price Prediction: APE will prove to be no match against the mighty dollar

Apecoin (APE) price action is having issues making up its mind as investors are fretting about what their next step will be, as several warnings are being issued left and right by banks, central banks and economic indicators that the turmoil on inflation and wage pressure is not over at all. As investors see their income decrease by the rise in the cost of living, less money can be allocated towards cryptocurrencies to invest. The US dollar is back below parity against the euro, but the greenback still has plenty of room to go, which is bad news for APE price action could drop already 40% solely on the back of that.

APE price could drop 40% of the dollar index trades to all-time highs

Apecoin price resides near the $5 marker that has been at the low of falling knife action on May 11 and has been used as a plateau for traders to take a pause, book some profit and use it as an entry point for a possible bounce higher. The past few trading days have shown that interest is there, as the lows have been creeping up above that $5 level. Slim gains will be up for grabs in the coming weeks and months, but that will only be for experienced traders. Overall, APE price action will be a ‘sell on rallies’ as the Dollar Index still has plenty of room to go, and more signals are starting to confirm that outcome.

APE price is, on a broader term, at risk of dropping like a stone in the coming three months. Traders will start to feel the winter squeeze on energy prices and will see more income being dissolved on the back of that, with less money to put to work in cryptocurrencies, in tandem with the dollar that will strengthen further as the Fed will not stop hiking until the inflation target is met, and that still has a long way to go. Once APE price defaults on that $5 level, the next support comes in at $4.27, which is around the start of the summer rally in July before bears can start to dig into profits with shorting towards $3.06 and printing 40% losses against where Apecoin is trading at the time of writing. 

APE/USD Daily chart

Of course, banks have always been very careful and easy in their communication, rarely going against the current macroeconomic backdrop. That could be the same outcome for now, as possible conditions could start to ease and open up some room for a goldilocks scenario where wages have increased, inflation starts to drop faster and more broadly, and puts people back to spending and buying cryptocurrencies. That scenario would trigger a massive buying wave and see APE price trading around $7.50, the high of the summer rally.