- ApeCoin DAO’s native $APE struggles to lift off from an all-time low.
- APE trader reveals setup for the short squeeze on one crucial condition.
- Bored Ape community is worried about the upcoming $APE unlock.
ApeCoin DAO has been through rough times lately – the community’s native $APE slid down to its all-time low of $1.77 eight days ago. In the latest rebound efforts, ApeCoin (APE) briefly climbed back above the $2 price range but was rejected at $2 resistance due to bearish short-term conditions surrounding the memecoin.
One of the biggest issues is the scheduled unlocking events – the nearest token unlock on 16th August 2023 will see a substantial amount of $APE poured into circulation while the coin has barely recovered from its recent plunge to an all-time low. The 15.6 million APE represents 4.23% of the memecoin’s circulating supply.
Bored Ape Yacht Club member Bored Chilla took to X, previously known as Twitter, to clarify the perspective on ApeCoin’s future in the coming months and a yearly performance perspective. At press time, the #65 ranked APE is changing hands at $1.85, according to CoinGecko.
Massive Short Squeeze Incoming?
The memecoin that powers ApeDAO and several metaverse games developed by Yuga Labs has several relevant utility cases. Firstly, $APE is used by the Bored Ape community for staking and arbitrage, while the $APE also powers Otherdeed by Otherside.
This promising metaverse game presents a series of activities for the Bored Ape community in a developing narrative involving additional NFT collections the holders use in gameplay. Theoretically, the AAA game could bring $APE back to its former glory, assuming the launch goes well and the Bored Ape community will flock to get the 100,000 additional lands on the Otherside.
On top of that, there’s a likely short squeeze incoming, given that the leading digital asset Bitcoin (BTC), breaks through $32,000. In such a case, the crypto bulls would take over the technical setup for $APE, as the price correlation between $BTC and $APE is enough to force closure on short positions, according to Bored Chilla.
APE Whales Make Major Moves
Meanwhile, blockchain analytics firm LookOnChain spotted several huge transactions – three whales sent a colossal 1.85 million $APE to centralized exchanges, namely Binance and OKX.
The crypto funds moved by the whales could signify a fear of unlocking events, as 4.5% of the total supply is usually considered a hard hit on the cryptocurrency’s price. However, whales withdrawing $APE to their CeFi accounts could also be linked to these platforms’ huge staking rewards.
For instance, Binance offers up to 18.5% APY on ApeCoin, while OKX’s yield on the primate-themed memecoin is 29.36%. The latest moves by whales indicate that ApeCoin is seen as a long-term investment, mostly linked to the success of the upcoming Web3 virtual playground for the community.
On the Flipside
- Despite not being owned by Yuga Labs, $APE fell to its all-time lows simultaneously with Yuga’s most famous blue-chip NFT collections, including Otherdeed, BAYC, and MAYC.
Why This Matters
ApeCoin was once a TOP 20 altcoin by global market capitalization and had quite several significant use cases on the blockchain.
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