The Steep Descent of APE Coin: A Deep Dive into the Crypto's Connection with the Bored Ape Yacht Club NFT Ecosystem

2023-07-06, 09:30

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/blog/1679447253155655279redian.jpeg)
## [TL; DR]
APE Coin has hit an all-time low, with its network growth plummeting by 63% amidst the recovering crypto market. The bearish trend suggests a possible further decline towards a $2 threshold. The coin's future trajectory is inextricably linked with the fortunes of the Bored Ape Yacht Club NFT ecosystem.

## Introduction 
APE Coin (APE), the native cryptocurrency of the Bored Ape Yacht Club (BAYC), has seen a significant slump throughout the second quarter of this year. Investors and crypto enthusiasts have been closely monitoring the token's performance, seeking signs of a potential turnaround. As the digital currency landscape continues to evolve, the big question is whether APE Coin can break free from its downward trend or if it's destined to remain trapped in this slump.
![](https://gimg2.gateimg.com/image/article/16886355914731688635274_.pic_hd.jpg)
Ape Coin Conceptual Logo - ElementalCrypto

## APE Coin's Performance
In recent months, APE Coin has experienced a substantial decline. The coin's price has dropped by over 55% from its mid-April highs of approximately $4.5 to its current value around $2.17. Even though there was a minor rally recently, the general trend has been bearish, with the 14-day chart revealing a substantial slump of 27.2%. This downtrend has been a formidable obstacle, hindering any potential upside movement.
![](https://gimg2.gateimg.com/image/article/16886356824741688635289_.pic.jpg)
Ape Coin Decline - Tradingview

## Connection with the Bored Ape Yacht Club Ecosystem
APE Coin's fortunes seem to be inextricably linked to the Bored Ape Yacht Club (BAYC) NFT ecosystem, with the latter's performance having a significant [impact on APE Coin](https://www.gate.io/how-to-buy/apecoin-ape "impact on APE Coin"). As the broader crypto market began to recover in mid-June, the BAYC ecosystem started losing traction, indicating that investors began reallocating capital into other altcoin markets. This bearish trend now threatens to spread toward APE Coin.
![](https://gimg2.gateimg.com/image/article/16886357214751688635301_.pic.jpg)
BAYC NFT - Valuart

## Technical Indicators
Technical indicators such as the Relative Strength Index (RSI) and On Balance Volume (OBV) have been indicating a decrease in buying pressure and demand. The RSI has been exhibiting lower highs since late January, and the OBV has been decreasing. These indicators suggest that sellers currently have control, and there is a possibility that APE could drop below the $2.0 mark, and potentially reach $1.0, its initial opening price on the Binance exchange.

## Influence of Bitcoin
Despite the bearish trend, there is a glimmer of hope as <a href="/th/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> has rebounded above the $27,000 threshold. Historical data shows that as Bitcoin's price climbs, so do the prices of other crypto assets. This correlation could potentially impact [APE's price trajectory](https://www.gate.io/trade/APE_USDT "APE's price trajectory"), but the outcome remains uncertain.
![](https://gimg2.gateimg.com/image/article/16886357704761688635329_.pic.jpg)
BTC at $30K - Coingecko

## APE Coin in the NFT World
APE Coin derives its utility from the BAYC ecosystem, and the fortunes of APE Coin holders are almost linked to the NFT world. The negative divergence has played a critical role in the ongoing price correction, and if it remains unchanged, APE Coin may struggle to break out of the bearish trend.

## Conclusion
APE Coin is currently in a bearish trend that suggests a possible further decline toward a $2 threshold. Its future trajectory seems to be connected with the fortunes of the Bored Ape Yacht Club NFT ecosystem. Investors and enthusiasts are closely monitoring the token's performance, eagerly awaiting signs of a potential turnaround. The prevailing bearish sentiment raises questions about whether APE Coin can find a ray of hope amidst this downturn.

## FAQs about APE Coin
### What is APE Coin?
APE Coin is the native cryptocurrency of the Bored Ape Yacht Club (BAYC), the globally top-ranked NFT trading ecosystem.

### Why has APE Coin's price been declining?
The decline in APE Coin's price is attributed to a decrease in demand, as indicated by the decreasing On Balance Volume (OBV) and the Relative Strength Index (RSI) showing lower highs. The BAYC ecosystem's loss of traction and the downward trend in the crypto market have also contributed to this decline.

### What is the speculated future of APE Coin?
The current bearish trend suggests that APE Coin might experience a further decline toward a $2 threshold. However, if the APE price rises above $2.25 and the resistance level does not hold, the APE Coin could potentially reach the $3 milestone.

### How is APE Coin's future linked to the Bored Ape Yacht Club NFT ecosystem?
APE Coin derives its utility from the BAYC ecosystem, and the fortunes of its holders are almost inextricably linked to the NFT world. Any negative divergence in the BAYC ecosystem can play a critical role in APE Coin's price correction.

### What is APE Coin Network Growth and why is it important?
Network Growth measures the rate at which a blockchain network attracts new users by summing up the daily number of new addresses created. A decline in APE Coin Network Growth indicates that the coin is struggling to attract new users, which could contribute to a decrease in its price.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

แชร์