Business

ApeCoin Price Breakout Flattens After $2.4M BAYC NFT Heist – What’s Ahead?

ApeCoin (APE) experienced a modest selloff a day after Bored Ape Yacht Club (BAYC), a popular non-fungible token (NFT) brand. reported losing $2.4 million worth of digital collectibles in a robbery.

APE price rally to $25 stalls

The hacker compromised BAYC’s official Instagram account and used it to post a phishing link that drained tokens from users’ cryptocurrency wallets.

On April 25, BAYC will cover Twitter Approved the hack, albeit too late as users had already transferred tokens to the hacker’s account and thus lost ownership of their extremely expensive Bored Ape, Mutant Ape and Bored Ape Kennel Project NFTs.

OpenSea, the largest NFT marketplace by volume and revenue, classified the stolen NFTs as suspicious. But even then, the hacker sold four BAYC collectibles for about $1.6 million.

APE, which serves as the governance token for BAYC’s decentralized autonomous organization ApeCoin DAO, fell nearly 11% to $17.41 on April 26.

As it fell, the token also deviated from the upside target of its prevailing “symmetrical triangle” pattern by $25, as illustrated in the chart below.

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APE/USD daily rate chart with ‘Symmetrical Triangle’ setup. Source: TradingView

The correction confirmed strong bearish sentiments around $20, a level that coincides with the 0.382 Fib line of the Fibonacci retracement chart drawn from the $41 swing high to the $8.50 swing low . This raised the possibility of APE extending its correction towards the 0.236 Fib line near $16 in the medium term.

A rising wedge risks another APE sell-off

Further downside cues on ApeCoin emerged in the form of a “rising wedge” pattern.

More specifically, rising wedges form when the price is trending up within a range defined by two contracting ascending trend lines. These patterns typically resolve after price breaks below the lower trendline, along with an increase in trading volume.

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ApeCoin has been forming a similar ascending structure since April 2022 as shown in the chart below.

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APE/USD 4 hour price chart with a rising wedge setup. Source: TradingView

The breakout target of a rising wedge is measured after adding the maximum distance between the upper and lower trend lines to the breakout point. Therefore, APE’s downside target for Q2 is between $14.37 and $17.50.

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