$APE and BAYC NFTs Take a Plunge—Is It Over Now, or a Massive Buy Opportunity?

Key Insights

• The floor price of BAYC NFTs has dropped significantly from its peak, with some NFTs losing over 90% of their value.

• The price of Apecoin has fallen alongside BAYC NFTs, currently sitting at around 97% below its all-time high.

• The rise of new NFT collections on other blockchains like Bitcoin and Solana may be contributing to the decline of BAYC.

• Analysis shows that APE may see some consolidation around $1.

• A rally to the $3.8 resistance remains imminent and would amount to a 247% rally from current price levels.

Back when the previous bull run was in full effect between late 2021 and early 2022, the Bored Ape Yacht Club (or BAYC) NFTs became all the rage among NFT enthusiasts, with its collection of 10,000 images of monkeys—each of them with varying rarities.

However, so far, the once heavily celebrated NFT collection has seen a dramatic decline so far and is now trading at an all-time low.

Moreover, it appears that this decline is spread out over the rest of the APE ecosystem, considering how the price of the $APE cryptocurrency is also at an all-time low.

What’s Wrong With the BAYC Ecosystem?

At the peak of its popularity in 2021, the BAYC NFT collection was the talk of the town, with some of these NFTs selling at over $ 300,000 apiece.

The floor price of the entire collection skyrocketed, as even celebrities like Justin Bieber jumped in on the trend, and bought a BAYC NFT worth a staggering $1.2 million at the time.

As of July 2023, according to CNBC, this NFT that Bieber bought, had declined by more than 95% in value and was worth only about $60,000.

The case is much, much worse at the time of writing.

According to data from CryptoSlam, the floor price of the Bored Ape NFTs has declined by around 90% from their peak.

In fact, according to data from NFTPriceFloor, the floor price of the Bored Ape yacht Club NFTs sits at just over 11 ETH, which is a stark contrast to the collection's peak, when BAYC NFTs traded for around 120 ETH on average in May 2022.

The decline in the price of Ethereum hasn't helped matters either and has caused the dollar value of this floor price to drop from over $400,000 to just over $34,000.

 Moreover, this trend comes amid the introduction of newer NFT collections on other blockchains like Bitcoin and Solana.

While the BAYC collection has maintained its standing as a top player among Ethereum NFTs with a market cap of $340 million, the current trajectory of BAYC hasn’t been very encouraging so far.

What’s Going on With $APE?

As it stands, CoinMarketCap data shows that APE is currently nursing a decline of around 97% from its all-time high.

The cryptocurrency has declined from its $39.4 all-time high in March 2022, to around $1.16, where it now sits.

According to the weekly chart above, APE has tested its all-time low of around $1 and is currently consolidating.

But what does this mean?

For starters, the $1 all-time low is currently the strongest support on APE's price chart at the time of writing.

This means that a break below $1 is entirely possible, but very unlikely, given the current state of things.

The likely course of action would be further consolidation on the cryptocurrency, slightly above $1, as well as a possible false breakdown from the whales, to collect the liquidity on leveraged traders.

With this being said, a rally to the $3.8 resistance remains imminent and would amount to a 247% rally.

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