- ApeCoin has crashed in the past few days as initial momentum faded.
- The decline happened as many holders sold their coins at a profit.
The ApeCoin price has fallen back to earth after last week’s spectacular rally. The APE token is trading at $11.2, which is substantially lower than its all-time high of $40. As a result, its total market capitalization has crashed to about $1.4 billion, making it the 76th biggest coin in the world. At its peak last week, it had a market cap of over $3 billion.
APE crash explained
ApeCoin is the native token for the Bored Ape Yacht Club (BAYC), one of the leading non-fungible tokens (NFT) ecosystems in the world. According to CoinMarketCap, its volume is second only to Win NFT Horse, which is built using the Binance Smart Chain.
The estimated market cap of Bored Yacht Club is over 1.05 million ETH, which is equivalent to over $3 billion. Also, there are about 10,000 NFTs in the ecosystem and 6,357 holders, most of whom are celebrities like Snoop Dogg and Justin Bieber.
ApeCoin was launched to become the native token for the Bored Ape Yacht Club. Some of the initial coins were distributed to holders, who could then sell them in the open market. Holders of the token will be able to take part in the platform’s governance.
The ApeCoin price jumped sharply initially after being launched as many investors rushed to buy. This was in line with the fear of missing out concept. It also rose as several developers announced that they will embrace the coin as their key token.
However, as we predicted on Friday, such initial pumps rarely last. For example, we saw the same situation happen with Shiba Inu, Floki Inu, and Internet Computer. The main reason for the crash was that most initial buyers exited with a strong profit.
In the future, however, a rebound cannot be ruled out because of the strong performance of the Bored Ape Yacht Club.
ApeCoin price prediction
The 30-minute chart shows that the APE price has been in a narrow range in the past few days as the initial momentum faded. It has moved to the 25-period moving average while the MACD has moved slightly above the neutral level.
Therefore, there is a likelihood that the ApeCoin price will rebound in the near term as many investors buy the dips. Besides, other altcoins like Ethereum Classic and Avalanche have all rallied in the past few days.
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