- ApeCoin witnessed increased volume among Ethereum whales, but it could be selling momentum.
- Let’s check the minimum downward move that investors may expect.
Are you planning to add some APE to your balance sheet? Unfortunately, you might have to postpone that decision. While publishing this content, the monkey-themed coin printed bearish signals, which may materialize into lucrative shorting opportunities.
Whalestats’ January 6 analysis indicated that APE joined the top 10 list of tokens by the leading 500 Ether whales by trading volume. That might make you presume that ApeCoin is witnessing heightened demand from large investors. Nonetheless, the opposite could be the case.
Meanwhile, assessing the token’s performance over the past few weeks can clarify Whalestats’ conclusion about APE. The alt printed a bullish action from mid-December. ApeCoin surged approximately 28% from $3.25-month lows to peak at $4.19 on January 5. After that, however, bears resurfaced to drag APE to its current $3.95 mark.
TradingView’s chart shows APE enjoyed impressive profits before selling actions emerged. That could mean that the lately seen uptick in volumes among the leading 500 Ether whales could signal to sell momentum due to profit-booking.
APE’s Increasing Bullish Momentum
APE remains vulnerable to downward moves as it switched to bearish over the past 48 hours. That means a possible short-selling chance. Short traders can anticipate another 4% decline in ApeCoin’s price. That will push the token toward its 50-day moving average and on the 50% Relative Strength Index.
Instead of heading toward the 200-d MA, ApeCoin pivoted and printed a bearish action within the past 48 hours. However, some on-chain indexes already flashed signals of faded confidence in ApeCoin’s capability to maintain its rally in the upcoming few days.
Nonetheless, transaction count and network growth hover at monthly lows. That supports the narrative that ApeCoin will find it challenging to secure bullish strength. Moreover, the retracement after rallying for more than two weeks means substantial exit liquidity.
The 30d MVRV reflected that case with a pivot over the past two days. That indicated any buying momentum at that time frame faded during this publication. Also, APE saw bearish volatility returning during this writing. Finally, the alt lost velocity on January 1 to 4, suggesting that bulls were weakening.
The Broader Market
The crypto market flashed revival moves during this publication, with many assets recording minor gains on their 24hr charts (Coinmarketcap data). The crypto market cap gained 1.21% in the last 24 hours to $823.27 billion. Also, the total cryptocurrency market volume increased by 1.77% in that timeframe to $27.21 billion.
Bitcoin continued its upside attempts towards the vital $17,000 with an overnight 0.96% increase. While writing these lines, the bellwether crypto traded near $16,917.50. However, the 1hr timeframe flashed bearishness, with Bitcoin dropping 0.08% within the past hour (Coinmarketcap data).
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