Thu. Sep 28th, 2023

APE price may witness further drops in the upcoming days or sessions as the “Otherside” hype fades.   

ApeCoin (APE) surprised its bulls as APE price lost approximately 40% within three days. While publishing this content, the altcoin traded near $17.66, following a 24.37% plummet over the previous 24 hours. 

ApeCoin attained its second-highest mark of $27.57 on 28 April, surging over 2,650% since its mid-March debut. Nevertheless, investors began unwinding their holdings after BAYC NFT creator Yuga Labs unveiled details of its Otherside Metaverse, dubbed “Otherdeed.”

Yuga Labs stated that minting the NFT would cost 305 ApeCoin (around $5,250 at the current price). That went against expectations that the firm would use the Dutch auction approach to sell the land parcels. Therefore, the announcement might have led to a demand decline as investors see no need to accumulate more APE tokens. 

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ApeCoin plummeted towards the $17 lows three days following the announcement by Yuga Labs. Moreover, the decision by Yuga Labs to limit Otherdeed NFTs minting accelerates APE’s sell-offs. The creators limited the mint to two NFTs for each wallet for the initial wave. That might have also contributed to driving ApeCoin’s demand lower. 

Meanwhile, @WatcherGuru tweeted that Bore Ape Yacht Club sold digital real estate worth more than $100,000,000 within 45 minutes of the Otherside Metaverse launch. 

Should You Buy APE after the Dip? 

ApeCoin acts as the primary settlement crypto for all services and products by Yuga Labs. Also, ApeCoin DAO uses APE as its governance token. ApeCoin DAO is a decentralized organization that gives the token holders powers to vote on proposals introduced by the community members. 

Nevertheless, the primary takeaway remains ApeCoin’s close relationship with Yuga Labs, a blue-chip enterprise that attained $4 billion in valuation about a year following its debut. Thus, the hype about its digital land sales, payable via APE, might absorb the current selling momentum. 

OpenSea, the leading NFT marketplace globally, introduced APE payments on 30 April. Nevertheless, Yuga Labs has directed APE DAO to conduct a vote on whether ApeCoin might migrate to its blockchain from Ethereum. Yuga Labs tweeted that ApeCoin should utilize its chain to ensure proper scaling. 

An independent analyst, Loma, pointed out ApeCoin’s bottoming possibilities regardless of the recent price drop, citing speculations and interest in the “Otherside” mint. He stated that the dip-buying might un-ironically fit ApeCoin and related networks. Loma added that APE could be a lucrative buy after the mint hype fades. 

APE Technical Agree

ApeCoin’s latest price slump saw the alt-hitting support confluence presented by the 100 4hr Exponential Moving Average and the 0.5 Fibonacci line (near $17.29) of the FIB retracement graph plotted based on the move from $10.63 to the swing high of $24. 

APE/USD has attempted to bounce off the mentioned confluence. But the lackluster volumes show the altcoin would continue falling, with the 0.618 Fibonacci line (at $15.72) acting as the immediate downward target. That would mean a 10% drop from APE’s today price. 

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The level matched the 200 4-hour Exponential Moving Average and the demand zone’s top, the Launchpad for the previous 100% rally by ApeCoin. On the other side, a bounce of the 100 4hr Exponential Moving Average would see APE testing the 0.382 Fibonacci lines, around the $18.85 mark. Accompanied by impressive surging volumes, APE could eye the bullish targets at $20, then $24. 

ApeCoin’s fall emerges as the broad market suffers bearishness. The global cryptocurrency market capitalization reflects the pessimistic outlook, hovering around $1.71 trillion at this publication. The metric has lost 2.64% within the past day. 

Bitcoin continues to struggle below the $40,000 mark. While publishing this article, Bitcoin traded near $38,053, dropping 1.44% within the past 24 hours. That triggered bearishness in the entire market. Most large-cap assets exhibited bearish signals on Sunday. 

Stay around for the latest crypto market news.

By Admin

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