The ApeCoin price has recoiled sharply as demand for the coin wanes in the past few days. APE has dropped to $14.95, the lowest level since April 22nd. It has fallen by over 46% from its highest level last week, bringing its total market value to over $4.2 billion. Bitcoin and other altcoins like Solana, GMT, and VeChain have declined sharply.
ApeCoin has become a relatively volatile cryptocurrency as the Bored Ape Yacht Club (BAYC) continues to evolve. For example, the coin’s price more than doubled from its lowest level in April to its highest point this month. However, it has now erased about 50% of those gains. The current weakness is mostly because of a virtual land sale that happened during the weekend.
This land sale was significantly successful as Yuga Labs raised $320 million. However, since ApeCoin is an Ethereum token, fees were significantly higher than expected. For one, it is estimated that Ethereum fees surged to about $180 million. As a result, Yuga Labs was forced to reimburse fees that were charged to these bidders.
ApeCoin also made headlines last week as the developers announced that they were considering multiple DAO proposals. Some of the proposals in question relate to staking processes and ecosystem fund allocation. One of the proposals being considered is an amendment to another recently failed one. The amended AIP-21 Staking Process with Caps now has 94.88% in favour.
ApeCoin price prediction
Turning to the three-hour chart, the APE price formed a double-top pattern at $27.6 in April. The chin of this pattern was at $18.5. Now, the coin managed to move below this chin and has retested the 78.6% Fibonacci retracement level. In addition, it has moved below the 50-day moving average while the Relative Strength Index has moved to the oversold level.
I suspect that the ApeCoin price will continue falling in the near term as sellers target the key support at $12. However, a move above the resistance at $16.50 will invalidate this view.