The Otherdeed NFT mint caused some wild moves in ApeCoin leading to a 40% fall, now what?
ApeCoin is a crypto that has been able to rise a whopping 1000% since its inception to the market in early 2022. But now things are different. ApeCoin caught its bulls off-guard with the APE price losing nearly 40% in just three days. The reason ApeCoin jumped as much as it did in recent weeks was speculation that the NFT launch would be a Dutch auction. This has been a common minting method in recent months and investors hoping to buy Otherdeed NFTs were positioning themselves with as much ApeCoin as possible to participate and maximize what they could buy.
Late on Thursday, April 28, Yuga Labs announced that the mint would cost a flat 305 ApeCoin, reducing the need for anyone to hoard tokens. There will also be a limit to the number of NFTs per wallet that can be minted, starting with two NFTs for the first wave. Naturally, that announcement led to a steady drop in the token’s price.
The value of ApeCoin recovered after NFT marketplace OpenSea confirmed that it would accept ApeCoin for at least some NFTs, potentially including Otherdeeds. More use cases for ApeCoin should help the value long-term, so that’s seen as a good thing.
ApeCoin serves as a primary settlement token for all the 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 the proposals made by community members.
But the biggest takeaway remains APE’s close association with Yuga Labs itself, a blue-chip startup whose valuation reached US$4 billion almost a year after its debut. So, the hype surrounding its metaverse land sales, all payable via ApeCoin, could absorb the ongoing selling.
OpenSea, the world’s leading NFT marketplace, also announced on April 30 that it has started accepting APE for payments on its platform. Meanwhile, Yuga Labs has requested the ApeCoin DAO to hold a vote on whether APE could migrate from Ethereum to its blockchain.
APE’s latest selloff has led its price to a support confluence defined by its 100-4H exponential moving average (EMA) known as the black wave and the 0.5 Fib line of around 17.29 of the Fibonacci retracement graphs drawn from US$10.63-swing low to nearly US$24-swing high.
APE/USD has been attempting to rebound from the said confluence, but lackluster volumes indicate that it would continue falling deeper, with the 0.618 Fib line near US$15.72 serving as the next downside target, down over 10% from May 1’s price.
The level coincides with the 200-4H EMA, or the blue wave, and the top of a so-called “demand zone,” which is the launchpad for APE’s previous 100% price rally.
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