ApeCoin Hits All-Time Low Despite Yuga Labs’ Otherside Metaverse
APE coin to decrease further despite new Metaverse reveal. | Credit: Shutterstock
Key Takeaways
- APE hit its all-time low of $1.76.
- Yuga Labs’ last big update was ‘Otherside,’ but the market didn’t react.
- Chart analysis points to further downside.
The NFT mania definitely marked the last bull cycle. Crypto Punks paved the way, but Bored Ape Yacht Club established it with billions of dollars forming in its collection. With the rise of the Metaverse sector, many JPGs have found their utility inside their native digital environments, which was also the case with BAYC.
But with the crypto market entering its bear cycle in November 2022, the interest in these experimental projects diminished significantly, and with it, the prices followed.
On July 28, Yuga Labs, the company behind the Bored Ape Yacht Club, presented their new Metaverse “Otherside .” As expected, it’s a virtual environment similar to a video game in which users can interact by using avatars. NFT tokens provide utility in ownership, and APE coin — its native currency.
The price of Ape coin (APE) hasn’t reacted to this reveal and has continued its downward trajectory. It is currently at its all-time low of $1.75, coming from its all-time high of $41.
Ape Coin Price Analysis
The price of APE has been in a downward trend since March 17, 2022, when it reached its all-time high of $41. Measuring its all-time low of $1.76 made today, August 3, 2023, we have seen a decrease of 96%.
Many altcoins have experienced a similar decrease, so APE is not an exception. The price structure formed a descending triangle in which we have most likely seen a three-wave correction developing. From January 28, the third wave C has started.
Does it have more room to go further down, or can we see the price of APE finally reaching a plateau?
The Relative Strength Index on the daily chart above is starting to fall below 30% or, in other words, in the undervalued zone. The last time the RSI was in the undervalued zone was on July 11, when the price was $1.88 and bounced from the descending triangle’s support, and the time before that was on June 14, when it fell to $2 and made a minor recovery.
This could signal that at least a local low is near, and another bounce might look likely from these levels. But on the other hand, MACD isn’t giving a bullish signal just yet. A red histogram chart indicates bearish momentum and with moving averages starting to diverge, signaling further downtrend continuation.
APE Price Update
APE’s price has continued moving to the downside since we last analyzed the token on August 11. At the time, it was traded around $1.70, which was at the descending support level from a large triangle, and there was a possibility of a recovery to its resistance.
However, the price consolidated before going to $1 on October 10, breaking from the descending support on the downside. The daily chart RSI signaled oversold conditions and was at 20% in mid-September, but the recovery came later.
With the price interacting with the descending resistance at $1.44, the RSI is signaling overbought conditions and showing divergence from October 24 as it was moving down while the price continued slightly upward.
There was a possibility that the October 10 low was the final one in this bear cycle, and there still is. But the current signs of struggle indicate that another lower low is more likely.
If the price breaks above the descending resistance level, it could signal that its bear cycle has ended and a new bull one has started. However, if it gets rejected, it would be propelled into a downward spiral with its first price target at around $0.80 area.
Conclusion
Bored Ape Yacht Club has been using the bear cycle to straighten its position in the NFT market by further expanding the NFT collection’s and APE coin’s utility in the Metaverse, which is a good sign.
The market hasn’t reacted to the news, though, and the price continues its previous downtrend. Despite its advancements, it appears that more downside should be expected in the near term with the diminishing interest in this project.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
