ApeCoin risks 30% crash after APE staking debut in December

December 2, 2022 Coin Telegraph

Altcoin

ApeCoin price has rallied 50% in the last three weeks but a sell-the-news event risks wiping out those gains.

The multi-week ApeCoin (APE) market rally is nearing exhaustion owing to a mix of technical and fundamental factors.

Fundamental — ApeCoin Staking launch

In the past two weeks, APE's price is up over 50% after bottoming at around $2.60.

The APE/USD rebound came in line with similar recovery moves elsewhere in the crypto market. But, it outperformed top assets, including Bitcoin (BTC) and Ether (ETH), as traders pinned their hopes on ApeCoin's staking debut.

The ApeCoin Staking feature will debut on Dec. 5 at apestake.io, according to its developer Horizon Labs. It will allow users to lock their APE holdings into four staking pools — ApeCoin pool, BAYC pool, MAYC pool, and Paired pool — that will allow them to earn yield periodically.

The feature announcement has resulted in a rise in the APE holders' count, according to data tracked by Dune Analytics. Notably, it reached 103,591 on Dec. 2 compared to 94,775 a month ago, which, combined with rising prices, shows an increase in APE's spot demand.

*ApeCoin holders over time. Source: Dune Analytics*

But analysts fear that the ApeCoin Staking may become a sell-the-news event. For instance, Altcoin Sherpa says that one shouldn't buy APE in anticipation of a continuous bull-run toward $5 after the staking launch.

Altcoin Sherpa:

"You can probably long until staking starts, and then you can just short it [...] I wouldn't buy here personally but would wait for a break/retest."

Technical — 30% APE price correction ahead?

Technicals meanwhile suggest that ApeCoin's price can decline by at least 30% by the end of December.

The daily chart shows APE's price entering a correction upon testing its multi-month descending trendline resistance near $4.50. This move is reminiscent of price pullbacks witnessed multiple times since August, as shown below.

*APE/USD daily price chart. Source: TradingView*

Each correction cycle highlighted in the chart above exhausts when APE reaches the lower end of the Bollinger Band. The $2.80-2.50 range comes into play if this fractal repeats, down up to 30% from current price levels.

Conversely, a breakout above the descending trendline resistance could invalidate the bearish setup — by sending APE price to its primary upside target near the 200-week exponential moving average (the blue wave) near $6.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

ApeCoin price eyes 45% rally following Otherside metaverse demo

July 19, 2022 Coin Telegraph

APE price

APE has been pursuing a rare ascending triangle reversal breakout, with its profit target at $8.40.

ApeCoin (APE) rallied to start the week as traders considered Yuga Labs' decision to open its Otherside metaverse for selected users. In doing so, the token broke out of a technical pattern that hints at another 45% price rally by September 2022.

Otherside metaverse euphoria

APE's price surged by almost 23.5% week-to-date to reach $6.12 a token on July 19.

The weekly gains came as a part of a rally that started on July 16. Interestingly, Yuga Labs invited 4,300 players of its Otherside gaming metaverse for a demo—and the tour of its Bored Ape avatar online platform—on the day of APE's rally.

That suggests traders purchased APE after taking cues from the Otherside update, given it serves as a governance token at ApeCoin DAO. This "decentralized autonomous organization," or DAO, powers the ecosystem of apps and services deployed by Yuga Labs and third-party brands, including Otherside.

APE price eyes 45% rally

The Otherside euphoria has also prompted APE to exit a technical setup called the "ascending triangle."

Ascending triangles are typically considered continuation patterns. Nonetheless, in rare instances, ascending triangles form at the end of a downtrend, leading to a strong price reversal

It appears APE's ascending triangle had formed at the end of its downtrend. That is because the token rallied by over 100% after bottoming out locally near $3 on June 15, followed by a break above the triangle's upper trendline near $5.22 on July 18.

*APE/USD daily price chart featuring 'ascending triangle' reversal setup. Source: TradingView*

As a rule of technical analysis, a breakout originating from an ascending triangle pushes the price north by as much as the maximum height between the triangle's upper and lower trendline. That puts APE on the road to $8.40, up about 45% from current price levels.

Conversely, a close below the triangle's upper trendline could trigger the prevailing bearish breakdown setup, with the profit target sitting below $3.50.

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.

ApeCoin: APE price climbs 55% in three days as a ‘BAYC land drop’ rumor goes viral

April 20, 2022 Coin Telegraph

APE price

Owners of the popular Bored Ape and Mutant APE nonfungible tokens (NFT) could receive virtual lands on the Yuga Labs' upcoming "Otherside" metaverse.

ApeCoin (APE) price has exploded higher on anticipations that it would become a de-facto payment token in an upcoming metaverse land sale.

APE price swelled nearly 28% in one day to reach over $17 per token on April 20. The rally came as a part of a rebound from three-day lows under $11, resulting in a 55% gain.

*APE/USD four-hour price chart. Source: TradingView*

BAYC land airdrop

A rumor circulating across social media platforms since April 18 suggested that the owners of the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFTs may receive virtual lands on the Yuga Labs' much-anticipated "Otherside" metaverse platform.

Alpha leak: these projects will be auto whitelisted to mint Otherside land.
BAYC - airdrop (center land)
MAYC - airdrop (mid land)
CryptoPunks - WL (outer rim)
Meebits - WL (outer rim)
Cool Cats - WL (outer rim)
Nouns - WL (outer rim)
WoW - WL (outer rim)
Toadz - WL (outer rim) pic.twitter.com/gZ5ldAdoQM
— Willy ₿ullish (@WillyTheDegen) April 18, 2022

Otherside will be an MMORPG game where players can employ their NFTs as native avatars or characters. A leaker investor pitch deck showed that Yuga Labs expects to earn $178 million by selling virtual lands, with APE acting as the de-facto token to process these purchases.

Some BAYC NFT owners claimed that Yuga Labs would sell the Otherside virtual lands via a Dutch auction. In doing so, the firm could set the minimum bid at 600 APE, about $10,700 at today's price.

Was just sent some huge alpha re @yugalabs land drop. The sale will be a Dutch auction of some sort starting at 600 $APE.

BAYC / MAYC (Airdrop)
Punks, Meebits, Cool Cats, Nounz, WoW, Toadz (Auto WL)

Get your $APE ready. Looks like we’re gonna need it. #BAYC #OTHERSIDE
— renegademaster / guccibayc.eth (@renegademasterr) April 20, 2022

Given this potential use-case, demand for ApeCoin may grow higher, which could partially explain APE's upside momentum in the last three days.

APE undergoing bullish breakout

The latest bout of buying in the APE spot market saw the APE/USD pair break out of a classic bullish continuation pattern.

As Cointelegraph reported earlier, breaking above the so-called "bull pennant" with decisive volumes could have ApeCoin rally above $40 in the next few months.

Meanwhile, if the technical pattern turns out to be a "symmetrical triangle" instead, APE's upside target will be near $22, according to the setup shown below.

ApeCoin now targets the 0.236 Fib line (~$16) of the Fibonacci retracement graph, drawn from $41-swing high to $8.50-swing low, as its interim resistance. A pullback from the said price ceiling would risk sending APE toward the triangle's top near $12.50.

APE price