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ApeCoin Price Prediction: History Suggests APE Could Crash Soon

The ApeCoin price has made headlines as investors piled into the new currency in the past few days. APE, the native coin, has risen to an all-time high of $11.35, which is significantly higher than where it opened. The coin has jumped by over 1,300% in the past 24 hours, bringing its total market cap to over $1.3 billion, according to CoinGecko. CoinMarketCap places its market value at over $3 billion.

What is ApeCoin?

ApeCoin is the native token for the Bored Yacht Club, one of the industry’s biggest non-fungible token (NFT) phenomena. The club is a collection of about 10,000 Bored Ape NFTs built-in Ethereum‘s network. Each Ape is unique and is created from about 170 character traits such as expression and clothing. In the past few months, the number of celebrities who have become members of the club has been rising. They include people like Eminem, Justin Bieber, Jimmy Fallon, and Steve Aoki.

Therefore, the ApeCoin is the new native coin for the ecosystem. Holders will take an important role in its governance. Existing holders of Bored Ape Yachts have been allocated some of the coins. The tokenomics of ApeCoin is relatively simple. There is a supply limit of 1 billion coins. As a result, the total diluted market cap for the ecosystem is about $11 billion. The coins in circulation are about 120 million, bringing the total market cap to about $1.3 billion.

ApeCoin price prediction

The ApeCoin price has been in a steady bullish momentum in the past few days as investors embrace the fear of missing out (FOMO) mentality. Also, it has risen after several brokers like Binance announced that they will list the coin. The performance of APE brings back memories of the early days of Internet Computer (ICP) and Shiba Inu. As you recall, the two coins surged to become the biggest coins in the industry.

However, later on, their prices crashed to record lows within weeks. Therefore, judging by history, there is a possibility that the ApeCoin price will decline sharply in the next few days. The chart below shows that it has formed a double top pattern, which is usually a bearish sign. 

ApeCoin price