Otherside metaverse land sale brings ApeCoin to -40% in three days
The APE price may fall further in the coming days as the Otherside hype fades.
ApeCoin (APE) caught its bulls off guard, with the APE price dropping nearly 40% in three days.
There was no Dutch auction
The price of APE reached its second-highest level on April 28, reaching $27.57, a gain of more than 2,650 percent from its mid-March debut.
Nonetheless, traders began unwinding their positions after Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT collection, revealed the details of its Otherside Metaverse lands, dubbed “Otherdeed.”
In contrast to expectations, Yuga Labs revealed that the NFT mint would cost a flat 305 APE ($5,250 at today’s price). As a result, the disclosure may have reduced the need for people to stockpile more ApeCoin tokens, resulting in a decrease in demand.
Three days after Yuga Labs’ announcement, APE fell as low as $17.
Furthermore, the selloff has been accelerated by Yuga Labs’ decision to limit the minting of Otherdeed NFTs, beginning with two NFTs per wallet in the first wave. This could have also contributed to a drop in demand for APE tokens.
Is APE a “good buy” after a drop?
ApeCoin is the primary settlement token for all Yuga Labs products and services. Furthermore, it is a governance asset within “ApeCoin DAO,” a decentralized autonomous organization that grants APE holders the right to vote on community members’ proposals.
The most important takeaway, however, is APE’s close relationship with Yuga Labs, a blue-chip startup whose valuation reached $4 billion almost a year after its debut. As a result, the hype surrounding its metaverse land sales, which are all paid for with ApeCoin, could absorb the ongoing selling.
On April 30, OpenSea, the world’s leading NFT marketplace, also announced that it has begun accepting APE for payments on its platform. In the meantime, Yuga Labs has asked the ApeCoin DAO to hold a vote on whether APE should migrate from Ethereum to its own blockchain.
Despite the recent price drop, Loma, an independent market analyst, believes APE may have bottomed out, citing “interest and speculation” surrounding the Otherside mint.
“The bear market dip-buying of choice appears to be $APE and related ecosystem,” the analyst observed, adding:
I think it’ll be a good buy once the mint-hype dies down
ApeCoin technicals agree
The recent selloff in APE has brought its price to a support confluence 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 graph drawn from a swing low of $10.63 to a high of nearly $24.
APE/USD has been attempting to recover from the aforementioned confluence, but low volumes suggest that it will continue to fall, with the 0.618 Fib line near $15.72 serving as the next downside 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 previous 100 percent price rally.
A rebound from the 100-4H EMA, on the other hand, could see APE test the 0.382 Fib line near $18.85. With volumes convincingly increasing, the price could test $20 and 24 as the next bullish targets.