ApeCoin (APE) caught its bulls off guard, with APE price losing nearly 40% in just three days.
No Dutch Auctions
APE’s price hit its second-highest level, hitting $27.57 on April 28, up more than 2,650% from its mid-March debut.
Nevertheless, traders started to unwind their positions after Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT series, published the details from the mint of his Otherside Metaverse lands, dubbed “Otherdeed”.
Yuga Labs revealed that the NFT mint will cost 305 APE (~$5,250 at today’s prices) a dish, contrary to expectations that the company would sell the metaverse plots in a sale to Dutch auction. Thus, the disclosure may have reduced the need for people to hoard more ApeCoin tokens, leading to lower demand.
APE fell to $17 three days after Yuga Labs’ announcement.
In addition, the sale has accelerated due to Yuga Labs decision to limit the minting of Otherdeed NFTs, starting with two NFTs per wallet for the first wave. This may also have played a role in the drop in demand for APE tokens.
BREAKING: BAYC sold over $100,000,000 worth of digital real estate 45 minutes after launching their Otherside Metaverse.
—Watcher.Guru (@WatcherGuru) May 1, 2022
APE a “good buy” after diving?
ApeCoin serves as the primary settlement token for all Yuga Labs products and services. Additionally, it is a governance asset within “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 association with Yuga Labs itself, a blue-chip startup whose valuation has hit $4 billion nearly a year after its debut. So the hype surrounding its metaverse land sales, all payable via ApeCoin, could absorb the ongoing sale.
OpenSea, the world’s leading NFT marketplace, has also announcement on April 30 that it began accepting APEs for payments on its platform. Meanwhile, Yuga Labs asked ApeCoin DAO to hold a vote on whether APE could migrate from Ethereum to its own blockchain.
I just tweeted about this an hour ago. $APE needs its own channel. https://t.co/eagb4FH1Hr
— David Gokhshtein (@davidgokhshtein) May 1, 2022
Loma, an independent market analyst, reported APE’s potential to bottom despite its latest price drop, citing “interest and speculation” surrounding the Otherside mint.
“Buying picks in the bear market seems to be without irony $APE and related ecosystem,” the analyst noted, adding:
“I think it will be a good buy once the hype wears off.”
ApeCoin techs agree
APE’s latest selloff has led its price to a confluence of support defined by its 100-4H exponential moving average (100-4H EMA; the black wave) and the 0.5 Fib line (around 17.29) of the Fibonacci retracement chart taken from the low of $10.63 to near the swing $24.
APE/USD attempted to rebound from said confluence, but lackluster volumes indicate it would continue to decline deeper, with the 0.618 Fib line near $15.72 serving as the next downside target, down more than 10% off today’s price.
The level coincides with the 200-4H EMA (the blue wave) and the top of a so-called “demand zone” – the launch pad for the previous 100% APE price rally.
Related: 2 Key Metrics Point to Further Decline for the Entire Crypto Market
Conversely, a rebound from the 100-4H EMA could have APE test the 0.382 Fib line near $18.85. Accompanied by a convincing increase in volumes, the price could test $20 and $24 as the next bullish targets.
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