The ApeCoin price remarkable rally is continuing as the ecosystem growth continues. The APE token is trading at $18.18, which is close to its all-time high of $19.50. It has risen by more than 147% from its lowest level on March 17th, bringing its total market cap to over $5.2 billion. So, is ApeCoin a good buy?
Why is APE rising?
ApeCoin is one of the newest cryptocurrencies around. It is the native token for the Bored Ape Yacht Club (BAYC), one of the biggest NFT ecosystems in the industry. According to CoinMarketCap, it has a total market value of 1.35 million ETH that are currently worth more than $3 billion. Its Mutant Ape Yacht has also risen.
The ApeCoin price has risen sharply as the ecosystem growth has accelerated. The developers are hoping that a metaverse platform will spur growth of the ecosystem. Investors believe that the ecosystem will lead to more growth of the metaverse and NFT industry. Its metaverse platform will be known as Otherside.
Still, there are concerns about the coin’s consolidation considering that over 52% of the coins are held by its insiders. And, most of the NFT purchases will go back to these insiders, who raised $450 million from investors last month. Indeed, in a note, The Verge said:
“Self-dealing founders and investors; a hype machine in overdrive; and a growing disconnect between the web3 we were promised and the one that’s being traded on the crypto exchanges. And when it does, I wouldn’t be surprised to see that decentralization is its first casualty.”
ApeCoin price prediction
The four-hour chart shows that the APE price has been in a strong bullish trend recently. The coin has managed to move above the important resistance level at $15.50, which was the highest level on March 28th. It has also moved above the 25-day and 50-day moving average while the Relative Strength Index (RSI) has moved slightly below the overbought level.
Therefore, there is a likelihood that the ApeCoin price will keep rising in the near term as bulls target the key resistance at $20.
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