ApeCoin traders and investors have cheered some impressive gains since this year began. The altcoin has ridden upside bullish waves as the overall crypto space recorded price upsurges, with APE presenting gains on nearly all its timeframes.
While ApeCoin enjoys a bullish ride, Yuga Labs’ BAYC (Bored Ape Yacht Club) and MAYC (Mutant Ape Yacht Club) remain dominant collections that you can access in the non-fungible token (NFT) market. DappRadar data shows the two collections rank 1st and 2nd in trade volume within the previous month. Nonetheless, considering the prevailing Yuga Labs condition, with ApeCoin stay profitable for enthusiasts?
Yuga Labs Lawsuit & Potential Impact on APE
Recent reports about the case against Yuga Labs may impact APE’s ability to extend its bullishness. First, the news suggested that a Fed judge ruled that Yuga Labs co-founders Wylie Aronow and Greg Solano would suffer deposition in the latest escalation between the firm and Ryder Ripps.
Next, Ryder Ripps kick-started a counterclaim alongside Jeremy Cahen – co-defendant. The saga began in June last year when Yuga Labs claimed the artist (Ripps) scammed BAYC buyers to hurt the firm. Remember, Ryder has criticized BAYC and Yuga Labs, calling the project a brainwashed cult.
One counterclaim was the Neo-Nazi connection, accusations that Yuga Labs denied in June 2022. Nonetheless, Ripps and his co-defendant have an opportunity to question the co-founders under perjury threat, which might or might not favor Yuga Labs, impacting the firm and APE’s astronomical surge.
What Next for APE?
APE has seen a rejection at the resistance of $5 during this publication and kick-started a downside move. However, it might be a slight correction, and ApeCoin rode bullish waves as leading cryptos rallied on their respective price charts.
Nevertheless, as Wylie Aronow and Greg Solano encounter deposition, investor sentiment shift on APE may support bearishness. Therefore, traders and investors should watch the statement against the firm co-founders as its outcomes will affect the company and ApeCoin.
Bears may win in the near term as the correction phase intensifies. Traders and investors will secure support at around $4.2 before targeting further retests of the $5 resistance. Meanwhile, enthusiasts should hold as they await the outcome of Yuga Labs’ lawsuit proceeds.
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