ApeCoin (APE<\/a>) caught its bulls off-guard with APE price losing nearly 40% in just three days.<\/p>\n APE’s price reached its second-highest level, hitting $27.57 on April 28, up more than 2,650% from its mid-March debut.<\/p>\n Nonetheless, traders started unwinding their positions after Yuga Labs, the Bored Ape Yacht Club (BAYC) NFT collection’s creator, released the details<\/a> of the mint of its Otherside Metaverse lands, dubbed “Otherdeed.”<\/p>\n Yuga Labs revealed that the NFT mint would cost a flat 305 APE (~$5,250 at today’s price), in contrast to expectations that the company would sell the metaverse land parcels in a dutch auction manner. Thus, the disclosure may have reduced the need for people to hoard more ApeCoin tokens, leading to a drop in demand.<\/p>\n APE dropped to as low as $17 three days after the Yuga Labs’ announcement.<\/p>\n Additionally, the selloff accelerated due to Yuga Labs’ decision to limit<\/a> the minting of Otherdeed NFTs, starting with two NFTs per wallet for the first wave. This may have also played a role in driving down demand for APE tokens.<\/p>\n BREAKING: BAYC has sold over $100,000,000 worth of digital real estate 45 minutes after launching their Otherside Metaverse.<\/p>\n \u2014 Watcher.Guru (@WatcherGuru) May 1, 2022<\/a><\/p><\/blockquote>\n ApeCoin serves as a primary settlement token<\/a> for all the Yuga Labs’ products and services. Additionally, it is a governance asset within “ApeCoin DAO<\/a>,” a decentralized autonomous organization that gives APE holders the right to vote on the proposals made by community members.<\/p>\n But the biggest takeaway remains APE’s close association with Yuga Labs itself, a blue-chip startup whose valuation reached $4 billion<\/a> almost a year after its debut. So, the hype surrounding its metaverse land sales, all payable via ApeCoin, could absorb the ongoing selling.<\/p>\n OpenSea, the world’s leading NFT marketplace, also announced<\/a> 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 own blockchain.<\/p>\n I just tweeted about this an hour ago. $APE<\/a> needs its own chain. https:\/\/t.co\/eagb4FH1Hr<\/a><\/p>\n \u2014 David Gokhshtein (@davidgokhshtein) May 1, 2022<\/a><\/p><\/blockquote>\n Loma, an independent market analyst, signaled<\/a> APE’s potential of bottoming out despite its latest price dip, citing “interest and speculation” surrounding the Otherside mint.<\/p>\n “The bear market dip-buying of choice seems to un-ironically be $APE<\/a> and related ecosystem,” the analyst noted, adding:<\/p>\n “I think it\u2019ll be a good buy once the mint-hype dies down.”<\/p><\/blockquote>\n APE’s latest selloff<\/a> has led 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 $10.63-swing low to nearly $24-swing high.<\/p>\n APE\/USD has been attempting to rebound<\/a> from the said confluence, but lackluster volumes indicate that it would continue falling deeper, with the 0.618 Fib line near $15.72 serving as the next downside target, down over 10% from today’s price.<\/p>\n The level coincides with the 200-4H EMA (the blue wave) and the top of a so-called “demand zone” \u2014 the launchpad for APE’s previous 100% price rally.<\/p>\nNo dutch auction<\/h2>\n
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APE a “good buy” after dip?<\/h2>\n
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ApeCoin technicals agree<\/h2>\n
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