BAYC sales crashing by 70% in a month leaves ApeCoin price struggling to breach multi-month barrier

ApeCoin price has seen its fair share of ups and downs, but for the better part of Q2 and to date, the cryptocurrency has been unable to make it beyond a key barrier. The reason for the same may have to do with the broader market cues, but the biggest driver still remains the Bored Ape Yacht Club (BAYC), the NFT collection APE is based on.

ApeCoin price continues its disappointing streak

ApeCoin price, trading at $2.062 at the time of writing, is inching closer to the 50-day Exponential Moving Average (EMA). This red line has been acting as a resistance level for the cryptocurrency since mid-April and has only been breached once in over three months.

APE/USD 12-hour chart

Despite noting a series of green candlesticks every now and then, the NFT token fails to stretch beyond the mark every time, falling back down after hitting the red line. The reason behind this goes back to the NFT collection the cryptocurrency is based on, which suffered a sudden decline in value recently.

The NFT market took a hit and with it the biggest NFT collection, BAYC, also noted losses. The floor price of the collection ended up dropping from $87 to $57 within a month. This impacted the overall sales of the NFTs in addition to declining demand, resulting in the total volume falling by more than 70% in the same duration.

BAYC floor price and volume

While this did bear an impact on the price action, it had a deeper impact on the investors who have already been skeptical for a while now. Selling has been the primary trait of APE holders since May 2023, which intensified this month.

ApeCoin supply on exchanges

Since the beginning of July, more than 3 million APE worth a little over $6 million has been sold back to the exchanges. This is proof of the decreasing confidence in the NFT asset that could keep ApeCoin price from closing above the 50-day EMA.