- Large investors have opted to hold their tokens rather than sell ahead of the token unlock event
- Retail traders have been accumulating APE, pushing its price higher.
As a seasoned analyst with over a decade of experience navigating the crypto market, I’ve seen my fair share of surprises and trends that defy expectations. The recent surge in ApeCoin [APE] is one such instance that has piqued my interest.
For approximately four weeks now, ApeCoin (APE) has experienced a significant rise of around 62.18%. This upward trend appears to be fueled by bullish energy, suggesting potential for even more growth. Remarkably, its daily increase of 10.71% underscores the possibility of further price movement in the near future.
An extended rally like this goes against the usual trends observed in financial markets. It’s particularly noteworthy given that token unlock events are often linked to pessimistic market feelings.
APE token unlock defies bearish expectations
An “unlocking of tokens” is a term used to describe when a blockchain organization makes more tokens available at set intervals, usually over time. These releases aim to boost the overall token quantity within circulation. Consequently, there’s often a price drop in the token value both before and after the unlock event takes place.
However, APE is bucking this trend, with its price currently on the rise.
On November 17th, we’re planning to unveil a substantial amount of APE tokens worth approximately $17.58 million. In total, this release equates to around 1.54% of the current locked supply.
As an analyst, I delved into the factors driving Algorand’s (APE) unexpectedly robust growth prior to the upcoming unlock event. The aim was to better understand and anticipate market movements related to this digital asset.
Whales pause selling as retailers drive APE’s momentum
It seems that whales have lessened their trading of APE, as indicated by a substantial decrease in major transactions, which plummeted from approximately 34.9 million to 16.37 million on November 13, according to IntoTheBlock’s data.
As I observed, a decrease in my whale interactions corresponded with an increase in token prices, usually indicative of increased confidence from large-scale investors. With these whales seemingly absent, it appears that retail traders are now propelling the recent surge in the token’s activity.
Further analysis underlined the role of a small, but active group of retail participants. Daily Active Addresses (DAA), a metric that tracks unique wallet activity, stood at just 1,280 at press time. This suggested that this cohort has played a key role in influencing APE’s latest uptick.
Currently, it’s unclear if these recent gains will be sustained. Nevertheless, further examination of additional on-chain indicators by AMBCrypto suggests that the bullish momentum for APE might persist.
APE’s bullish momentum is likely to persist
It’s important to note that data from Coinglass suggests a positive long-term trend for APE as well.
The number of outstanding, unresolved Future contracts on APE increased by 24.40%, indicating that longer-term investors have been progressively boosting their holdings. This is a positive signal reflecting growing optimism among traders about the market’s potential upward trend.
The Funding Rate has also remained positive, climbing to 0.0297%. This meant that long traders have been paying fees to short traders – A key indicator of bullish sentiment.
Read ApeCoin’s [APE] Price Prediction 2024–2025
To sum up, the Netflow of APE tokens on exchanges was negative for both daily and weekly periods, amounting to approximately -$2.94 million daily and -$8.80 million weekly. This trend suggests a decrease in supply (selling pressure) and potentially increased demand.
If these indicators continue to suggest a bullish trend, it’s probable that the upward momentum for APE will carry on past the impending token release.
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2024-11-17 05:11