BAYC notes a two-month high volume, but ApeCoin price remains unmoved

ApeCoin price has been disappointing investors since February and continues to do so in Q3. The cryptocurrency, which was born from the Bored Ape Yacht Collection (BAYC) collection, was expected to bear the impact of the changes in the Non-Fungible Token (NFT)sector. However, lately, that has been proven wrong.

ApeCoin price decline continues

ApeCoin price has been oscillating around the $2 mark since mid-June, and despite the volatility in the crypto market, the altcoin has failed to recover. The reason for this was initially considered to be the NFT market’s decline which resulted in a fall in demand for the token based on the BAYC collection. 

This stood true up until mid-July as the floor price for the BAYC collection kept on falling to the point where it hit an all-time low of 29.98 ETH ($56,000). In the span of a month, this floor price fell by 27% from 47 ETH ($77,000), with the total volume of NFTs traded also falling at a rapid rate.

ApeCoin floor price and volume 

This changed over the past week as the BAYC collection noted a surge in the total sales, and volume hit a high of $13 million, which was last seen a month and a half ago. Interestingly this did not bear any effect on the price action as APE moved barely trading under the 50-, 100- and 200-day Exponential Moving Averages (EMAs) for three months now.

APE/USD 1-day chart

This is a concerning situation for investors as the NFT market’s condition no longer hold any power over the ApeCoin price. Furthermore, the broader market cues seemingly have no control over the price action either. 

APE shares a correlation of 0.15 with Bitcoin, the biggest cryptocurrency in the world. This means that even a spike in BTC price would not bear similar results for ApeCoin. 

ApeCoin correlation with Bitcoin

The recent rally in Bitcoin price did push APE a little higher, but it failed to make any significant movement. The Relative Strength Index (RSI) also failed to sustain the breach of the neutral line, strengthening the bearishness observed since mid-April when the indicator first fell below 50.0.

Thus, the altcoin now relies on the investors alone, whose activity could trigger a rise in demand, consequently leading to a recovery. Transaction volume generated by APE holders has been nominal for months now, averaging at $80 million despite the cryptocurrency holding a market capitalization of $1.9 billion.