Originally published on: May 01, 2022
ApeCoin (APE) took a surprising nosedive, plummeting by almost 40% in just three days.
The price of APE soared to $27.57 on April 28, marking a staggering 2,650% increase since its debut in mid-March.
However, things took a turn when Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) nonfungible token (NFT) collection, unveiled details about the mint of its Otherside Metaverse lands, known as “Otherdeed.”
Yuga Labs disclosed that the NFT mint would require a flat fee of 305 APE, equivalent to $5,250 at the time. This unexpected announcement, which differed from the expected dutch auction sale, likely led to a decrease in demand for ApeCoin tokens, resulting in a significant drop in price.
The value of APE plummeted to as low as $17 just three days after Yuga Labs’ revelation.
Furthermore, the selloff accelerated due to Yuga Labs’ decision to limit the minting of Otherdeed NFTs to two per wallet in the first wave. This limitation also contributed to the reduced demand for APE tokens.
In a groundbreaking development, BAYC sold over $100 million worth of digital real estate within 45 minutes of launching their Otherside Metaverse.
ApeCoin acts as the primary settlement token for all of Yuga Labs’ products and services. It is also a governance asset within ApeCoin DAO, allowing APE holders to vote on community proposals.
Despite the recent price dip, market analyst Loma suggests that APE may be nearing its bottom, citing ongoing interest and speculation related to the Otherside mint.
The current support confluence of APE’s 100-4H exponential moving average and the 0.5 Fib line could serve as a turning point, with the possibility of a rebound towards the 0.382 Fib line near $18.85. However, continued falling prices could see APE target the 0.618 Fib line at $15.72.
While there are mixed signals regarding APE’s future trajectory, staying informed and conducting thorough research is essential for investors in the volatile crypto market.
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