ApeCoin Slipped 40% in Three Days Despite Metaverse Land Sale Otherside – Here’s Why

ApeCoin (APE) got its bulls unattended, with the APE price losing almost 40% in just three days.

No Dutch Auction

The APE price hit its second -highest level, hitting $ 27.57 on April 28, up 2,650% from its mid -March debut.

However, entrepreneurs began to unwind their positions after Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT series, published the details mint from his Otherside Metaverse land, nicknamed “Otherdeed”.

Yuga Labs revealed that the NFT mint will cost 305 APE (~ $ 5,250 at current prices) a serving, contrary to expectations that the company will sell the metaverse plots at a Dutch auction sale. Thus, disclosure could reduce the need for people to store multiple ApeCoin tokens, leading to a reduction in demand.

APE dropped to $ 17 three days after Yuga Labs ’announcement.

Four hour APE/USD price chart. Source: Trading View

In addition, sales have accelerated due to Yuga Labs decision to limit the mining of Otherdeed NFTs, starting with two NFTs per wallet for the first wave. It may also play a role in reducing the demand for APE tokens.

Is APE a “good buy” after the dive?

ApeCoin serves as the primary settlement token for all Yuga Labs products and services. In addition, it is a management asset within the “ApeCoin DAO”, a decentralized autonomous organization that gives APE holders the right to vote on proposals made by community members.

But the biggest advantage remains APE’s close partnership with Yuga Labs itself, a blue-chip startup whose valuation hit $ 4 billion almost a year after its debut. That’s why the hype surrounding its metaverse land sale, all paid for through ApeCoin, could absorb the ongoing sale.

OpenSea, the world’s leading NFT marketplace, is also available advertisement on April 30 it began accepting APEs for its platform fees. Meanwhile, Yuga Labs has asked ApeCoin DAO to cast a vote on whether APE can migrate from Ethereum to its own blockchain.

Loma, an independent market analyst, reported APE’s potential is low despite its most recent price decline, citing “interest and speculation” surrounding the Otherside mint.

“Buying picks at the bear market seems ridiculous $ APE and related ecosystems, “said the analyst, adding:

“I think it’s a good buy when the hype is gone.”

ApeCoin technologies agree

APE’s latest selloff brings its price to a meeting of support defined by its 100-4H exponential moving average (100-4H EMA; the black wave) and the 0.5 Fib line (around the 17.29) on the Fibonacci retracement chart taken from below $ 10.63 near the $ 24 cradle.

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Four hour ApeCoin price chart. Source: Trading View

APE/USD tried to rebound from the said encounter, but lacking volumes indicated it would continue to decline deeper, with the 0.618 Fib line near $ 15.72 serving as the next downside target, low at more than 10% of the current price.

The level corresponds to the 200-4H EMA (the blue wave) and the peak of a so -called “demand zone” – the launch pad for the previous 100% APE price rally.

Relevant: 2 Key Metric Points of Further Decline for the Entire Crypto Market

Conversely, a rebound from the 100-4H EMA could have APE testing the 0.382 Fib line near $ 18.85. Coupled with a convincing increase in volumes, the price could test $ 20 and $ 24 as the next strength targets.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you need to do your own research when making a decision.

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