Whales Dump ApeCoin (APE) Holdings Amid Recent Price Surge
ApeCoin (APE) has experienced a significant price surge of 63.86% in the past week. However, large holders of the cryptocurrency, known as whales, are showing skepticism. The number of wallets holding between 1 million and 10 million APE has been steadily decreasing since October 19.
This drop in whale activity indicates a lack of confidence in the sustainability of the rally. Without the participation and confidence of these major holders, it may be challenging for APE to maintain its upward momentum.
Despite the news of Yuga Labs launching ApeChain, which garnered attention for APE, the whales remain unconvinced. The continuous decline in the number of wallets holding significant amounts of APE suggests a lack of faith from major holders, despite the recent price increase.
Monitoring whale activity is crucial as they often drive significant market movements. Between October 19 and October 25, the number of APE whales dropped from 168 to 158.
This decline in whale participation implies that even with the recent gains in APE price, whales are not convinced and are not actively accumulating more of the cryptocurrency. This lack of participation could make it challenging to sustain the rally and indicates uncertainty in APE’s current price momentum.
Looking at the ApeCoin DMI chart, it reveals that the current trend is relatively weak. The ADX value, which measures the strength of the trend, is currently at 22.91, indicating a lack of strong momentum. A strong trend is typically defined by an ADX value above 25.
While the +DI (blue) is higher than the -DI (red), suggesting buying pressure is currently dominating selling pressure, the ADX below 25 indicates that the current upward movement lacks the force needed to continue significant gains.
To sustain and strengthen APE’s uptrend, the ADX would need to rise above 25, confirming a more decisive trend in the current buying momentum suggested by the interplay between the +DI and -DI.
In terms of price predictions, APE is currently trading above the shorter-term EMA lines, indicating bullish momentum. However, these lines are beginning to flatten, suggesting potential consolidation after the recent surge. The drop in the shorter EMA line further supports this consolidation.
Key resistance levels for APE are marked at $1.47 and $1.82. Breaking the $1.47 resistance could lead to a potential 53% price growth and a test of the $1.82 level. On the downside, significant support levels are at $1.12 and $0.94.
Maintaining support above $1.12 will be crucial in holding onto recent gains and avoiding a deeper correction. This will determine APE’s relevance among the top altcoins in the market, as the coin has seen fluctuations in and out of the top 100 by market cap in recent months.