The ApeCoin price has been punched in the face in the past few days. After initially rising to $18, APE has collapsed to about $10, a 40% decline. As a result, its total market capitalization has dropped to about $1.38 billion, making it the 83rd biggest cryptocurrency globally.
ApeCoin is a new cryptocurrency for the Bored Ape Yacht Club (BAYC) community. It was developed by the team behind the popular celebrity Non-Fungible Token (NFT) ecosystem. Its goal is to create a structure in which BAYC moves to become a viable Decentralized Autonomous Organization (DAO). As a result, the coin will be used to ensure the ecosystem’s governance and reward members.
ApeCoin’s price jumped sharply on Thursday and Friday as investors embraced the coin and feared missing out (FOMO). However, as I predicted on Friday, the coin has lost a substantial market cap as the initial excitement fizzles out and more people exit their trades.
The future of ApeCoin is a bit uncertain. Judging by past boom; and bursts like Internet Computer, we can assume that the coin will continue dropping for a while as its demand falls and panicked investors sell. Later on, the coin will likely rebound depending on the performance of the Bored Ape Yacht Club NFT ecosystem.
Turning to the 30-minute chart, we see that the APE price has been in a strong bearish trend in the past few days. It fell to a low of $9.51, which was the lowest level on record. In the past few hours, the price has crawled back and managed to move above the 25-period and 15-period moving averages. The MACD has managed to move close to the neutral level while the price is moving above the 23.6% Fibonacci retracement level.
Therefore, there is a likelihood that the coin will rebound in the next few sessions as some investors buy the dips. If this happens, the next key resistance level to watch will be at $12, which is along the 50% Fibonacci retracement level. A drop below $9.50 will invalidate this view.
This post was last modified on %s = human-readable time difference 08:05