Why ApeCoin is on track to be the next Dogecoin
- ApeCoin price is bleeding amidst wider crypto market crash, the NFT token posts 15.5% losses.
- Whale activity on ApeCoin’s network has increased, with million-dollar transactions crossing 100.
- Analysts predict a recovery in ApeCoin price as the NFT token prepares to begin its recovery.
ApeCoin has emerged as a leading NFT token with a high volume of whale transactions and on-chain activity. Analysts believe ApeCoin could recover from the recent slump and compete with leading Shiba-Inu-themed tokens.
ApeCoin price recovery could begin soon
ApeCoin has been a pioneering NFT token with a highly engaged community of Bored Ape Yacht Club holders. The NFT token witnessed a rise in whale transactions worth $1 million or higher on May 5, with the count exceeding 100.
Proponents equate the rise in large volume transactions with higher demand for ApeCoin. The first-ever native NFT collection recently hit an all-time high of $26.70. After hitting a new high, the APE price went through a pullback and was hit by a market-wide crypto bloodbath.
APE price has plummeted 15.5% overnight in response to the crypto market correction. Proponents believe rising concerns regarding inflation and recession have led to capital outflow from risk-based assets like Bitcoin, Ethereum and altcoins.
Dogecoin, the leading meme coin, has witnessed double-digit growth and rising utility among real-world businesses on the back of the community, ‘Doge-army’, and influencers like Elon Musk, that endorse DOGE. ApeCoin’s community consists of influencers that hold Bored Ape Yacht Club, one of the highest-grossing NFT collections.
ApeCoin has therefore found utility in the metaverse, like ‘Otherside’. With the rising utility, there has been a spike in volatility in APE prices. ‘Weighted sentiment’, an indicator of investors’ outlook on the NFT token, has fluctuated, hitting a high in March 2022.
ApeCoin Sentiment among holders
Analysts have evaluated the ApeCoin price chart and expect a recovery in APE. Keeger Francis, a Bitcoin and crypto specialist at Finder, said, ApeCoin’s price rally could be considered a “meme coin pump.”
Francis said,
ApeCoin looks a lot like DOGE and SHIB. So in the short term, there could be a large momentum trade leading to much higher prices. But in the long term, and after the hype has subsided, I think APE will decrease substantially in value.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
