Can ApeCoin Drop Lower?

Time Stamp: June 21, 2022 1:30 PM
Source Node: 1497318

The post Can ApeCoin Drop Lower? by Ryan McNamara appeared first on Benzinga. Visit Benzinga to get more great content like this.

ApeCoin, the governance token for the Bored Ape Yacht Club (BAYC) ecosystem, took a massive hit in market capitalization since its inception three months ago. Other than governance, ApeCoin is used to purchase land in the Yuga Labs Otherside metaverse, called Otherdeeds, and is also used to fund endeavors such as merch drops.

ApeCoin’s launch this year was one of the most anticipated token launches in crypto. ApeCoin is now among the lowest-performing assets in the 50 top coins. 

The past few months for the BAYC community and Yuga Labs have been rough, with the Otherdeeds mint resulting in $200 million worth of ETH lost to gas fees and failed transactions. The widespread crypto market crash has left many BAYC non-fungible token (NFT) holders in the red on their positions.

With ApeCoin far below its all-time high, many on Twitter claim this to be a buying opportunity. However, until more activity and utility take place in the ecosystem, a bottom is difficult to predict, especially since it saw high volatility after its launch.

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Can ApeCoin Drop Lower Than $1?

On June 15, 2022, APE is trading at $4.01 and is up 14% in the past 24 hours. For APE to break to the $1 level, ApeCoin would have to tumble 75%. While this scenario is not out of the question, APE is already down heavily from its all-time highs. The token needs to see more adoption in the Otherside metaverse and the hype must come back into full swing, or APE may continue slumping lower and a new bull run will be less likely. 

The APE token was trading at around $25 at the beginning of March 2022. One possibility for the downward price action recently is that the hype was far greater than the true value at launch. Now it is up to the markets to determine where the real bottom is to be found.

On the flip side, the price could turn bullish before it hits $1 if a clear bottoming structure emerges in Bitcoin and Ethereum.

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How to Short ApeCoin

Both FTX and ByBit offer short-selling features if you feel this token will continually break to the downside. If your IP address shows you are in the United States, shorting on these platforms is prohibited. 

Can ApeCoin Still Break Above $20 in 2022?

Just a few months ago, ApeCoin was exploding in value and was recognized as one of the fastest-growing crypto projects. While the overall market has experienced a slowdown, ApeCoin has taken a greater hit than others.

For ApeCoin to return to its all-time highs, several events need to occur. Bitcoin and Ethereum must provide clear signals that the local bottom has come in. The BAYC ecosystem needs to have a successful launch of the Otherside metaverse. If the Otherside launch fails or Yuga Labs conducts more messy mints, the company may lose much of its once-coveted hype.

Onboarding smaller investors by decreasing the point of entry to the Bored Ape community is vital for BAYC’s future if it wants to expand its community to those who can’t afford BAYC NFTs.

A final improvement that could be the catalyst for a surge in price for ApeCoin is if the community votes to create its own chain. Shortly after the Otherdeeds land sale problem, AIP-41 was proposed to the community, suggesting that ApeCoin should move to its own chain.

The community struck down this proposal with only 46.38% of stakers in favor of ApeCoin moving to its own chain. For the proposal, a total of 1.7 million APE were staked for voting. 

The AIP-41 co-creator, Matt Galligan, believes it is time for the decentralized autonomous organization (DAO) to work on a forward-thinking strategy that will facilitate the movement of ApeCoin to another blockchain.

Another proposal to move ApeCoin to a different blockchain will be voted on again at an undetermined date.

Where to Buy ApeCoin

Gemini supports buying and selling APE with a direct USD-to-APE pair. Gemini is an easy-to-navigate crypto platform with simple procedures for getting onboarded like snapping a photo of your driver’s license for Know Your Customer purposes.

Will ApeCoin Keep Crashing?

Most of the crypto market demonstrates fear and uncertainty right now, so it is probable that if Bitcoin and Ethereum continue trending down then ApeCoin will follow suit.

On the other hand, if Bitcoin can hold its 200-week moving average, which has historically marked the bottom of many bear markets, then ApeCoin continuing down may get invalidated.  

At the time of writing, the floor for a Bored Ape NFT is back up above $100,000 at a USD price of $105,688, or 86.9 ETH, which is a 81.17% drop from the all-time high price of $423,154 on April 30, 2022, according to Nomics.com. 

Unsurprisingly, ApeCoin is also down 85% from its all-time high of $27 only two months ago. Seemingly, the bears have a stranglehold on the Bored Ape ecosystem and do not want to let go. 

Is Now a Good Time to buy ApeCoin?

ApeCoin is at a discount relative to its price just a few months ago. However, this price drop is warranted from current market conditions and problems surrounding the Otherdeeds launch.

The ApeCoin DAO’s division on whether to move ApeCoin to another chain has also caused concerns as to the community being as unified as it claims to be.

The BAYC community remains the most successful NFT project, and the community’s management team has never stopped executing regardless of recent market disarray.

It is possible that Bitcoin and Ethereum could find their local bottoms relatively soon, and if this happens, ApeCoin could go on another explosive run to the upside. However, even if this occurs, a move to the upside may be a relief rally rather than sustained price movement. 

The post Can ApeCoin Drop Lower? by Ryan McNamara appeared first on Benzinga. Visit Benzinga to get more great content like this.

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