ApeCoin soared over the last few days as speculation surrounding Bored Ape Yacht Club’s Otherside mounts
ApeCoin has risen by nearly 58% in the last two days. The technicals now suggest that APE may see a brief spike in profit-taking. The gains could soon extend as speculation surrounding Bored Ape Yacht Club’s Otherside project mounts.
ApeCoin soars as Bored Ape fans await Otherside launch
ApeCoin is gaining bullish momentum. The red Bored Ape Yacht Club affiliate token is reaching new highs.
APE has gained nearly 58% over the past two days, rising from a low of $10.90 to a high of $17.20. The sudden upside momentum seems to have been fueled by speculation that Yuga Labs, the company behind the Bored Ape Yacht Club NFT collection, will use it as a currency to sell virtual land in the new Metaverse project – Otherside. Rumor has it that Otherside will sell the plots in a Dutch auction with an opening bid of 600 APE. A Twitter user known as the new developer claimed that they received information about Otherside’s drop mechanics in a tweet early Wednesday.
The development comes as Bored Ape Yacht Club, the breakout star of the 2021 NFT boom, continues to dominate the non-vessel-type market. The current floor price for an NFT Bored Ape is just over 119 ETH, worth around $370,000, almost double that of the previous top NFT collection, CryptoPunks. In March, Bored Ape Yacht Club cemented its dominance over pixelated Punk figures when Yuga Labs acquired the intellectual property rights of the collection from Larva Labs for an undisclosed amount revealed. It announced ApeCoin a few days after revealed that Otherside would drop in April.
While no details on ApeCoin’s potential utility for Otherside sales have been confirmed, the asset has enjoyed a significant boost. It appears to be positioning itself to step in. price discovery mode. However, the token can briefly retrace first to gather its liquidity to rally to new highs.
The Tom DeMark (TD) Sequential indicator has issued a sell signal on APE’s four-hour chart. The downtrend formation developed as a green nine-bar candlestick, predicting a one- to four-body correction. A spike in profit-taking around current prices could help validate the pessimistic near-term outlook.
A break above the $15.60 support could be the first sign of confirmation. If it drops below the support, ApeCoin could fall back to $14.40 or even $13.70 before it recovers and tries to make a new record high.
APE/USD 4-hour chart | Source: TradingView
It should be noted that the short-term bearish thesis is likely to be invalidated if ApeCoin prints a four-hour candlestick closes above $17.20. A break of a critical resistance level could discourage investors from re-entering the market, driving the price towards $20 or higher.
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