{"id":425065,"date":"2022-04-01T17:19:58","date_gmt":"2022-04-01T14:19:58","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/apecoin-risks-another-massive-selloff-as-ape-drops-70-in-two-weeks-heres-why\/"},"modified":"2022-04-01T17:19:58","modified_gmt":"2022-04-01T14:19:58","slug":"apecoin-risks-another-massive-selloff-as-ape-drops-70-in-two-weeks-heres-why","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/apecoin-risks-another-massive-selloff-as-ape-drops-70-in-two-weeks-heres-why\/","title":{"rendered":"# ApeCoin risks another massive selloff as APE drops 70% in two weeks \u2014 Here&#8217;s why"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2cbbe3546f4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2cbbe3546f4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/apecoin-risks-another-massive-selloff-as-ape-drops-70-in-two-weeks-heres-why\/#%E2%80%9D_ApeCoin_risks_another_massive_selloff_as_APE_drops_70_in_two_weeks_%E2%80%94_Heres_why_%E2%80%9C\" >&#8221; ApeCoin risks another massive selloff as APE drops 70% in two weeks \u2014 Here&#8217;s why &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/apecoin-risks-another-massive-selloff-as-ape-drops-70-in-two-weeks-heres-why\/#Inflationary_risks\" >Inflationary risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/apecoin-risks-another-massive-selloff-as-ape-drops-70-in-two-weeks-heres-why\/#Protecting_APEs_value_is_possible\" >Protecting APE&#8217;s value is possible<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_ApeCoin_risks_another_massive_selloff_as_APE_drops_70_in_two_weeks_%E2%80%94_Heres_why_%E2%80%9C\"><\/span>&#8221; ApeCoin risks another massive selloff as APE drops 70% in two weeks \u2014 Here&#8217;s why &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>A euphoric price rally by ApeCoin (APE) seen in mid-March <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be exhausted already thanks to the coin&#8217;s 70% drop in valuation in the past two weeks \u2014 and it may fall further in April.<\/p>\n<p>At the core of this bearish outlook is a rising wedge, a technical pattern that forms as the price consolidates upward inside a range defined by two converging ascending trendlines. <\/p>\n<p>In a perfect scenario, rising wedges resolve into a bearish breakout, confirmed by a decisive drop below the lower trendline that typically takes the price as low as the maximum wedge&#8217;s height.<\/p>\n<p>ApeCoin has been painting a very similar pattern since March 18, as shown in the chart below. The coin recently broke below its rising wedge&#8217;s lower trendline, bringing itself in proximity with the setup&#8217;s theoretical price target near $9, about 30% lower than April 1&#8217;s price.\u00a0\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/ea3148c6-52dc-49bf-ace4-13174cde683a.png\"><figcaption style=\"text-align: center;\"><em>APEUSD daily price chart featuring a &#8216;rising wedge&#8217; setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Meanwhile, a clear divergence between rising prices and falling volumes across the last two weeks also indicated a weakening upside momentum, raising the chances of a drop towards the wedge target, as discussed above.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Inflationary_risks\"><\/span>Inflationary risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The bearish setup emerges as markets continue to look for clues about APE&#8217;s utility in the nonfungible token (NFT) and metaverse sector. <\/p>\n<p>To recap, Yuga Labs, the firm behind the popular Bored Ape Yacht Club (BAYC) NFT collection, minted 1 billion ApeCoin as the governance tokens of their new decentralized autonomous organization (DAO). Then they airdropped 10,000 APE to each BAYC NFT owner, amounting to 15% of the total supply.<\/p>\n<p>Meanwhile, APE gained listing across some of the leading crypto exchanges, including FTX and Binance, on the same day, providing avenues for BAYC owners to liquidate their APE rewards instantly. As it happened, APE rose from nearly $1 to nearly $41 on its March 17 debut, but has since seen a strong correction.<\/p>\n<p>Josh Ver, co-CEO of SparkWorld, a prediction platform for NFTs, noted that APE&#8217;s current valuation \u2014 still around 1,200% higher than its debut price on Binance \u2014 is a result of the &#8220;hype, excitement and exuberance&#8221; around Yuga Labs&#8217; success as a &#8220;blue-chip&#8221; startup.<\/p>\n<p>&#8220;Yuga Labs, the studio behind the collection, are a commercially viable business; last year, they saw over $127 million in revenue,&#8221;\u00a0he explained, adding that &#8220;if ApeCoin holders received a share of these profits, then APE would hold considerable fundamental value.&#8221;<\/p>\n<p>But Ben Lilly, a token economist at Jarvis Labs, raised concerns about ApeCoin&#8217;s inflationary model, which could weigh its valuation down in the future. <\/p>\n<p>He said that 9.4 million APE would likely enter the market each month over the next year as\u00a0Yuga Labs, the four BAYC Founders, and will be able to unlock their allocated tokens.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/8daf98ac-3689-4baf-8b95-9abcccadb9ee.png\"><figcaption style=\"text-align: center;\"><em>APE supply chart. Source: ChainPulse, Jarvis Labs<\/em><\/figcaption><\/figure>\n<p>&#8220;This implies a need for about $132 million of monthly demand or $4.4 million per day that needs to enter the market to soak up new supply,&#8221; Lilly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/chainpulse.substack.com\/p\/chainpulse-token-report-ape?s=w\">wrote<\/a>, adding:<\/p>\n<blockquote><p>&#8220;With these supply unlocks and substantial inflation in the first year, it begs the question to the market\u2026 How will Yuga Labs, BAYC, the DAO and venture firms (a16z and Animoca) generate the needed demand? Is it even possible?<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Protecting_APEs_value_is_possible\"><\/span>Protecting APE&#8217;s value is possible<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>But like Ver, Lilly suggests that Yuga Labs&#8217; brand value could protect ApeCoin from the said inflationary risks, noting that the $4-billion startup could source better <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, artists, and resources that translates to higher potential asset values later if used wisely.<\/p>\n<p><strong><em>Related:\u00a0NFT creator Yuga Labs raises $450M, bringing company valuation to $4B<\/em><\/strong><\/p>\n<p>For instance, Yuga Labs has already released the teaser video of its upcoming metaverse called &#8220;Otherside&#8221; that enables the crossover of the NFT world&#8217;s most popular collections, including CryptoPunks, with the BAYC.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">See you on the Otherside in April. Powered by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/apecoin?ref_src=twsrc%5Etfw\">@apecoin<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/1cnSk1CjXS\">pic.twitter.com\/1cnSk1CjXS<\/a><\/p>\n<p>\u2014 Yuga Labs (@yugalabs) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/yugalabs\/status\/1505014986556551172?ref_src=twsrc%5Etfw\">March 19, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&#8220;In that same line of thinking it should not be a surprise either if a more accessible NFT hits the market for use in the Otherside NFT metaverse,&#8221; wrote Lilly, adding that it may bring more users to &#8220;access the virtual world,&#8221; thus growing APE\u2019s marketshare in tandem.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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At the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":425066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvODQ1MmE1NmQtNGM1Mi00ZjUwLWJkMmItMzY1MTRhZmE2NDkzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,77892,74939,91498,78261,73785,71407],"class_list":["post-425065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-crypto-collectibles","tag-market-analysis","tag-metaverse","tag-tech-analysis","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/425065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=425065"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/425065\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/425066"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=425065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=425065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=425065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}