- ApeCoin price has crashed by over 71% from its all-time high.
- ApeCoin's sell-off is mostly because of the rising interest rates.
ApeCoin price has crashed hard in the past few weeks as concerns about NFTs and cryptocurrency price remain. The APE token is trading at $8, which is about 71% below the highest point on April 28th this year. The current price is the lowest it has been since March 18th this year.
Why has APE crashed?
ApeCoin is a relatively new cryptocurrency that was created by Yuga Labs. Yuga was the creator of Bored Ape Yacht Club, the biggest NFT collection in the world. The goal of the coin was to help reward BAYC NFT holders.
In the past few weeks, the developers have unveiled tools to increase its utility. These new tools include a metaverse platform where people will be able to buy virtual assets.
While ApeCoin achieved success early on, the hype that surrounded its launch has eased recently. As a result, the APE price has fallen by more than 71%, and its total market cap has crashed from over $5 billion to the current $2 billion.
Learn more about how to buy ApeCoin.
There are several reasons why the APE coin has crashed hard in the past few weeks. First, there have been concerns about the insider ownership of the coin. Ideally, insiders at Yuga Labs have a lot of power, invalidating it as being decentralized.
Second, the decline is mostly because of the ongoing sell-off in the cryptocurrencies, stock, and bonds market. The total market cap of all cryptocurrencies has dropped below $1.5 trillion. The Nasdaq 100 index has fallen by over 25% from its all-time high. Similarly, the yields of America’s Treasuries have risen to the highest level in years.
Third, ApeCoin price has fallen because of fears of contagion after the crash of Terra LUNA and Terra USD.
ApeCoin price prediction
The four-hour chart shows that the APE price has been in a strong bearish trend in the past few weeks. The coin has moved below the important support level at $10.50, which was the lowest level in April. It moved below the 25-period and 50-period moving averages. The coin is also below the neckline of the head and shoulders pattern.
Therefore, there is a likelihood that the ApeCoin price will continue falling as bears target the key support at $5. A move above the key resistance at $10.5 will invalidate the bearish view.
