ApeCoin Slides in Response to a Controversial Otherside NFT Sell-Out
- On Sunday, ApeCoin (APE) tumbled by 21.5% to end the day at $15.68.
- Otherside sold the Otherdeed NFTs for a flat price after previously planning a Dutch auction launch, reducing APE demand.
- A second loss in three sessions left APE below the 100-day EMA as indicators turn bearish.
ApeCoin (APE) slumped by 21.5% on Sunday. Reversing a 4.28% gain from Saturday, APE ended the day at $15.68.
Bullish sentiment from the broader crypto market failed to deliver support as APE holders responded to the Otherdeed NFT auction.
APE hit an all-time high of $27.62 on April 28 in response to an anticipated Dutch auction for the Otherside land sale.
Despite the sell-off, APE ranks #29 on CoinMarketCap, holding above Decentraland (MANA) and The Sandbox (SAND) ranked #38 and #40, respectively.
Otherside’s Saturday Otherdeed NFT Sale Sinks APE
On Saturday, Yugo Labs, the platform behind Bored Ape Yacht Club (BAYC), held its Otherside NFT sale.
The sale of 55,000 Otherdeed land NFTs ended within hours, with investors purchasing the NFTs for a flat 305 APE.
The Otherdeed NFT mint is sold out – we are awestruck at the demand shown tonight. Apes and Mutants, the opening of the 21-day claim period is being delayed until the price of gas drops to reasonable levels. We’ll tweet when the claim opens. https://t.co/iRz64lklbv
— OthersideMeta (@OthersideMeta) May 1, 2022
At the time of writing, Otherdeed for Otherside ranked #1 by trading volume on the OpenSea marketplace for the last 24 hours and the last 7-days.
While the sale was a resounding success, APE holders had expected a Dutch auction, which could have pushed the price of the Otherdeed NFTs well above the flat selling price of 305 APE.
As a result of the lower price, APE holders offloaded APE, leading to the reversal.
Each Otherdeed NFT represented a land parcel in Otherside, Yugo Labs’ metaverse game.
Last month, market expectations that ApeCoin will become the ‘payment token of choice’ for the Otherside land sale drove APE to $27 levels.
Bored Ape owner Renegademaster took to Twitter to share news of Yugo Labs getting ready to sell land on the Otherside metaverse.
According to the tweet,
“The sale will be a Dutch auction of some sort starting at 600 $APE.”
Renegademaster went on further to say,
“This info was sent to me by a reliable source, however, is not confirmed or official news. Speculation at this stage so please DYOR as always! Just sharing what I was told.”
This info was sent to me by a reliable source, however is not confirmed or official news. Speculation at this stage so please DYOR as always! Just sharing what I was told. ✌️
— renegademaster / guccibayc.eth (@renegademasterr) April 20, 2022
In a Dutch auction, the seller considers all bids before finding a ceiling price for the NFT sale. There is then a gradual price decline at predetermined time intervals.
Expectations were for a price ceiling of 600 APE, double the actual flat selling price of 305 APE.
The sale was not without controversy, with high demand causing an Etherscan crash and failed transactions.
We wanted to say a few words about the mint tonight. 🧵
— Yuga Labs (@yugalabs) May 1, 2022
APE Price Action
At the time of writing, APE was up 1.91% to $15.91. A bullish start to the day saw APE strike an early high of $16.14 before easing back.
APE will need to move through the $17.22 pivot to make a move through the First Major Resistance Level at $18.80.
Broader market sentiment would need to improve to support a move through $17.50.
In the event of an extended rally, APE should test the Second Major Resistance Level at $21.94. The Third Major Resistance Level sits at $26.65.
Failure to move through the pivot would bring the First Major Support Level at $14.08 into play. Barring another extended sell-off throughout the day, APE should avoid sub-$13 levels. The Second Major Support Level sits at $12.49.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. As a result of the last week’s sell-off, APE sits below the 100-day EMA, currently at $17.12. This morning, the 50-day EMA narrowed to the 100-day EMA. We also saw the 100-day EMA narrow to the 200-day EMA; APE price negative.
APE would need to avoid the 50-day EMA and move through the 100-day EMA to support a return to $20.