After trading in a tight range between $10.00 to $13.00, ApeCoin broke out on April 24. It peaked at over $26.00. Speculators bet on massive metaverse digital transaction volumes increasing.
ApeCoin takes the Bored Ape Yacht Club NFT theme. The crypto market rewarded early buyers who paid $8.00 or less. The bad news is that the three-fold price increase on April 28 to over $26.00 did not last. Like a Y2K bubble, Apecoin fell to $19.16 the next day. On April 30, it traded at over $24.00. This “false rally” had one major red flag that speculators could not ignore.
The second rally failed to re-take the $26.00 high. When it failed, ApeCoin traded at around $16.43 as of the time of writing.
Traders unwound their positions when Yuga Labs, which created the Bored Ape Yacht Club NFT collection, released details of “Otherdeed.” Speculators learned that the company would sell the metaverse land through a dutch auction style. People did not need to hoard ApeCoins.
Your Takeaway
OpenSea, a marketplace for NFTs, announced that it would accept APE for payments on its platform. The increased support is a positive development. Still, the market will decide on the value of APE in the weeks ahead.
