ApeCoin (APE) caught its bulls off surprise, with the APE price dropping roughly 40% in three days. The price of APE achieved its second-highest level on April 28, reaching $27.57, a gain of more than 2,650 percent from its mid-March launch.
Nonetheless, traders began unwinding their bets after Yuga Labs, the inventor of the Bored Ape Yacht Club (BAYC) NFT collection, revealed the contents of its Otherside Metaverse regions, called “Otherdeed.”
In contrast to predictions, Yuga Labs disclosed that the NFT mint will cost a flat 305 APE ($5,250 at today’s market). As a result, the revelation may have lessened the desire for users to stockpile additional ApeCoin tokens, resulting in a decrease in demand.
Three days following Yuga Labs’ statement, APE plummeted to as low as $17. Furthermore, the selloff has been intensified as a result of Yuga Labs’ intention to limit the minting of Otherdeed NFTs, beginning with two NFTs per wallet in the initial wave. This might have also contributed to a drop in APE token demand.
ApeCoin is the principal payment cryptocurrency for all Yuga Labs products and services. Furthermore, it serves as a governance asset within the “ApeCoin DAO,” a decentralized autonomous organization that grants APE holders the power to vote on community members’ ideas.
The most important lesson, though, is APE’s strong relationship with Yuga Labs, a blue-chip firm whose value hit $4 billion barely a year after its launch. As a result, the buzz around its metaverse land sales, which are being paid for with ApeCoin, might absorb the continuous selling.
On April 30, OpenSea, the world’s top NFT marketplace, also announced that it has begun accepting APE for payments on its platform. In the meanwhile, Yuga Labs has asked the ApeCoin DAO to take a vote as to whether APE should transfer from Ethereum to its own network.
Despite the recent price drop, Loma, an impartial market analyst, believes APE may have bottomed out, noting interest and speculation about the Otherside mint.
APE/USD has been attempting to recover from the aforementioned confluence, but low volumes suggest that it will continue to decline, with the 0.618 Fib line near $15.72 acting as the next downward target, down more than 10% from today’s price.
The level corresponds to the 200-4H EMA (the blue wave) and the top of a so-called “demand zone,” which served as the starting point for APE’s last 100 percent price advance.
A recovery from the 100-4H EMA, on the other hand, might see APE challenge the 0.382 Fib line at $18.85. With volumes substantially growing, the price might challenge $20 and 24 as the next bullish goals.
02 Feb 2023
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