Why has ApeCoin been this cheap after starting so strong in March 2022?
Due to the bearish outlook of the crypto finance market, is ApeCoin’s price expected to rise in the future? Is ApeCoin worth buying?
To tell you the truth, ApeCoin is relatively cheaper than most coins because of several reasons. Primary among them is its oversized maximum token supply.
With 1 billion APEs as total and maximum supply, it would take huge investor confidence from individual whales, and institutional investors to cut down on supply.
Other reasons are a lack of independence on the part of the ApeCoin crypto project. For the last month, its relevance has largely been linked to the NFT project, the Bored Ape Yacht Club (BAYC).
One important factor you should take into account is that an asset having a low price does not mean that it is undervalued.
Crypto projects like Shiba Inu (SHIB) and Dogecoin (DOGE) are not undervalued although their prices are low. This is because their ecosystems are not strong enough and the price is determined by tweets by Elon Musk and mere speculation by the crypto community.
With that said, the two projects still have billions of dollars in market capitalization.
For a project like APE, it is undervalued although it is ranked as a top 50 digital asset by market value.
This puts the ApeCoin project above Axie Infinity (AXS), Aave (AAVE), Maker (MKR), and Kusama (KSM) despite their relatively higher prices.
As a trader or investor, can you expect ApeCoin to spike again? Is now the perfect time to buy ApeCoins?
Let us dive deep into the subject of why ApeCoin is so cheap. It would help us find answers to the question, is ApeCoin worth buying?
ApeCoin Price Performance
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ApeCoin (APE) was launched on Thursday, March 17, 2022.
On or before that day, APE gained the support of multi-asset exchange eToro, the largest cryptocurrency exchange in the United States, Coinbase, and the biggest cryptocurrency exchange by volume, Binance.
Aside from these platforms, Uniswap V3, Huobi Global, Gate.io, Kucoin, OKX, FTX, BitMart, Crypto.com, Kraken, Bybit, BitGlobal, Gemini, Bifinex, AAX, Bitpanda, OKCoin, and Poloniex also announced support for ApeCoin on its opening day as a crypto trading asset.
This explains the $2.3 billion in trading volume recorded by APE on March 17, which conferred it a medium-cap digital asset by market capitalization.
APE opened its first day with a price of $1. With an eye on the aforementioned investor interest, APE rallied to an all-time high price of $39.40 within hours.
As the token reached such a peak, many early buyers felt that APE may not be able to cross the $40 milestone due to the locking-in of profits by many investors. They were not wrong.
Millions of holders of the token within hours decided to take profits and forgo potential earnings in the short term. This led to a plummeting of APE from its all-time high to a new low of $8.52 to close the day. APE fell by a staggering 78% within hours of reaching new milestones.
On the following day, there was a 277% spike in trading volume. The trading volume recorded for APE on March 18, 2022, was around $8.9 billion. This increased the market capitalization of APE to more than $3.5 billion.
After opening at $8.53, APE soared by 108% to an intraday high of $17.75. The novel token behind the ApeCoin ecosystem ended the day by shedding 26% of its day high to $12.96.
The hype started fading off as investor interest in the token started waning.
The trading volume of APE on its third day of trading was more than $2.8 billion.
APE dropped below $2 billion in volume on March 25, 2022. On the day, the trading volume was $1.086 billion. This was 87% less than the trading volume recorded on the second day of trading.
Towards the end of March 2022, APE fell below $1 billion, on March 27, 29, 30, and 31. On the last day of the month, the trading volume recorded was approximately $766 million.
Overall, March opened and closed with prices of $1 and $12.69 respectively. This was a 1,169% monthly return.
In April 2022, the story has been different. APE has not recorded trading volume above $1 billion.
On April 1, 2022, APE opened at $12.70. The token reached a monthly high price of $13.78 on April 2.
As of writing, APE continues to trade between $10 and $14. The average trading volume in April is $500 million.
After going through a brief history of APE, you may have asked the question, why is ApeCoin so low after such a substantial spike in price?
Let us examine some of the causes that explains this.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Why Is ApeCoin So Cheap?
Although there are many factors, the maximum supply of the token, and the dying down of the hype of the coin can be attributed to the relatively lower prices of ApeCoin.
In advanced trading studies, we have a term called “priced in”. "Priced in" is a future event that the market has already anticipated in the price of an investment.
So, in the first few days of ApeCoin’s existence, the hype of the token buoyed by its association with the Bored Ape Yacht Club and Mutant Ape Yacht Club led to an increase in the price of APE.
As of April 2022, there is no news of BAYC, MAYC, or the founders of the project, Yuga Labs making an announcement that could drive the price of the coin to new high highs.
As of writing, the token will continue to trade below $20 for a long time since all the major factors that could drive its price have been priced into the valuation of the token already.
The other factor has to do with the maximum supply of 1 billion. There are 28% of APEs in circulation and this leaves 72% of the token still up for grabs.
Suppose a whale decides to invest $10 million into ApeCoin, the person would be able to buy around 779,423 APEs.
This is an insignificant figure of the more than 700 million tokens still up for grabs.
Aside from these, do not forget that ApeCoin is still a young crypto project. There is room for growth.
As the ecosystem expands, there is a huge chance that institutional investors and experienced individual traders will pour more liquidity into APE.
Read Also: Is ApeCoin A Good Investment And Should I Invest in APE?
Should I Buy ApeCoin While It Is Still Cheap?
If you want to buy ApeCoin while it is still cheap, your reason for buying should not be based on recommendations from social media, the fear of missing out (FOMO) on gains, having too much cash to burn, or just having a strong risk appetite for investment.
Your decision must be informed by independent research which could help you know more about the fundamentals of the project.
In addition to this, you must also consult reputable crypto news and forecasting portals so that you would be informed about ApeCoin Price Predictions in the short, medium, and long term.
Once you have fundamental and technical analysis, you will be emboldened to make quality decisions about the possible price patterns of ApeCoin.
As of April 2022, the market is still in a recovery phase.
Experts, analysts, and gurus believe that once the bulls return, APE will resume its uptrend.
Some of the experts also believe that like Cardano, ApeCoin will have more real-world use cases of its ecosystem which will reflect positively on the valuation of the token.
So, is ApeCoin a good buy? YES! ApeCoin is a digital asset you should consider buying due to the project having more positives than negatives.
Check Out: Should You Buy ApeCoin (APE)? 5 Pros, 5 Cons
Is ApeCoin (APE) Worth Buying?
ApeCoin’s potential for growth is driven by the backing of several major players in the crypto finance space who are part of the ApeCoin Foundation.
This adds credibility to why it is worth buying ApeCoin since many of these individuals have sustained projects worth billions of dollars.
What’s more, ApeCoin has the support of an NFT powerhouse, an impressive market capitalization, housed in the Ethereum ecosystem which will soon make it a proof-of-stake coin, continues to see awesome trading volume, has positive reserve risk, has a massive crypto community behind the project, has massive utility, and it is highly undervalued.
It is worth buying APE now that it is trading below $20.
Should the token cross $100 someday, you could make a fortune out of a small investment.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Will ApeCoin (APE) Bounce Back?
Yes! Most ApeCoin price predictions are positively skewed towards a spike in the valuation of the cryptocurrency.
Many analysts, experts, and gurus think the ApeCoin altcoin will command a trading price that is higher than what APE trades for in April 2022.
Let us take a look at some of the price forecasts made in the short and medium-term that helps explain why ApeCoin is worth investing in.
According to the experts at Changelly Blog, ApeCoin could command the best possible trading price of $50 by the end of 2022. The same experts expect APE to reach the highest possible trading price of $60 by the year’s end of 2025.
According to the analysts at Price Prediction.net, APE could trade for an average trading price of $15.25, a minimum trading price of $14.89, and a maximum trading price of $17.46 by the close of 2022. On the last day of 2025, the analysts estimate APE to reach a regular trading price of $49.12, the least possible trading price of $47.79, and the best possible trading price of $56.86.
According to the gurus at Digital Coin Price, ApeCoin could reach an average trading price of $16.29, the lowest possible trading price of $15.56, and the highest possible trading price of $17.60 by the end of 2022. By the very end of 2025, the gurus believe APE could command the regular price of $24.91, a minimum trading price of $21.96, and a maximum trading price of $27.87.
According to experts at Up To Brain, APE could reach the highest possible trading prices of $14.52 and $20.92 by the end of 2022 and 2025 respectively.
Per the predictions of the Wallet Investor, ApeCoin could command the best possible trading prices of $16.089 and $22.131 by the year’s end of 2022 and 2025 respectively.
Conclusion
ApeCoin is cheap because it is a young project. Bitcoin did not command 10% of its current price in its first year of trading, and neither did Ethereum. With time, the real valuation of APE would come to fruition.
Do not be surprised if APE gains more adoption as a transactional currency in addition to being listed as a payment method by crypto casinos, Time magazine, and play-to-earn games.
ApeCoin is highly undervalued and will spike to new milestones once all driving forces are in motion.
Open an account with eToro, deposit some funds with USD, and finally – buy ApeCoin from just $10.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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