ApeCoin (APE) investors and traders have seen some big gains since the start of 2023. With the crypto market experiencing a increase in prices, ApeCoin has been riding a bullish wave up show results in almost all timeframes.
ApeCoin is riding the bullish momentum, while Yuga Labs’ Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) remain some of the dominant collections available in the NFT market.
according to DappRadar, the two collections were first and second in terms of trade volume in the past month. However, with the new Yuga Labs situation, will APE remain profitable for investors?
The Yuga Labs Lawsuit And How It Could Affect ApeCoin
The latest information about the lawsuit filed against Yuga Labs could affect APE’s ability to continue its bullishness.
according to newsA federal judge has ruled that Greg Solano and Wylie Aronow, the founders of Yuga Labs that created BAYC and MAYC, must face depositions in the latest escalation between the company and Ryder Ripps who launched answer along with co-defendant Jeremy Cahen.
The saga began in June 2022 when Yuga Labs filed a lawsuit to the artist, admitting that Ripps is scamming the buyers of BAYC with the supposed intention of harming the company. Ryder has been a vocal critic of Yuga Labs and BAYC, going so far as to refer to the community as brainwashed cult.
“bayc is not a brainwashed cult”
byc: pic.twitter.com/zp0X9BL2SF
— RYDER RIPPS 🔜 (@ryder_ripps) June 17, 2022
One of the counterclaims is the alleged one The origins of Neo-Nazisthe allegations contained did not return by Yuga in June last year. However, Ripps and Co. will now have the opportunity to question the two co-founders in detail under the threat of perjury which may or may not fall in favor of Yuga Labs, affecting the company and APE in the astronomical rise.
Image: Twitter
Will ApeCoin Continue APE?
At the time of writing, the token has declined in the $5 resistance range and is starting to lose momentum. This could only be a short correction as APE is riding bullish as a major cryptocurrency get together also.
Crypto total market cap at $816 million on the daily chart | Chart: TradingView.com
However, as the founder of Yuga Labs is subject to a deposition, investor sentiment in APE may be bearish. Investors and traders should monitor the oath statement to the founders of the company because this result will affect the company and NFT and tokens.
In the short term, bears can win because the correction phase is active. Investors and traders will find support at $4.2 which should encourage a retest of resistance at $5. But for now, investors should HODL while we await the outcome of the proceedings against Yuga Labs.
-Featured image from The Guardian