ApeCoin (APE) Price Sees 100% Boost After Apechain Launch, Whale Support Declines

By admin On Oct 22, 2024

The price of ApeCoin (APE) has surged nearly 100% in the last seven days following the announcement of Apechain and APE’s staking program. Despite this rally, whales are not accumulating more APE, indicating a lack of confidence in the sustainability of this price increase.

The number of wallets holding between 1 million and 10 million APE has actually decreased, suggesting that the recent momentum might be driven more by hype than strong fundamentals. As APE reaches overbought conditions, the potential for a correction remains a significant risk.

Whales Are Not Accumulating APE

Despite the hype around the launch of Apechain, the number of wallets accumulating large amounts of APE is not increasing. Specifically, the count of holders with between 1 million and 10 million APE has been steadily decreasing, dropping from 175 on September 20 to 166 by October 20.

This trend indicates that big investors, often referred to as “whales,” are not yet confident enough to increase their positions.

Wallets holding between 1 million and 10 million APE. Source: Santiment.

This metric is important because whale activity often reflects broader market sentiment. When large holders accumulate, it typically signals strong confidence in the asset’s future growth potential.

Even with the recent price surge in APE, whales appear cautious, suggesting that they may not believe this rally is sustainable. Until these major players start accumulating, a continued price uptrend remains uncertain.

ApeCoin RSI Shows an Overbought State

APE’s Relative Strength Index (RSI) is currently at 78, up significantly from 35 just a few days ago. This sharp increase in RSI reflects the recent surge in buying activity, pushing APE into overbought territory.

When RSI moves into such high levels, it suggests that the asset may be overvalued in the short term. That means it could be due for a pullback.

APE RSI. Source: TradingView

RSI, or Relative Strength Index, is a momentum indicator used to assess whether an asset is overbought or oversold. It ranges from 0 to 100, with readings above 70 typically indicating overbought conditions and readings below 30 indicating oversold conditions.

APE’s RSI is now well above 70, combined with a lack of whale accumulation and uncertain fundamentals, which points to a possible price correction ahead. The recent rally may not be sustainable if it’s driven solely by hype, making a pullback increasingly likely.

APE Price Prediction: Will It Go Back to April Levels?

APE price is approaching its next significant resistance levels at $1.82 and $2.07, which it has not reached since late March and early April.

If APE manages to break through these resistance points, it could result in a 38% price surge. However, breaking these levels would require strong buying momentum, potentially driven by sustained interest in Apechain.

APE EMA Lines and Support and Resistance. Source: TradingView.

On the flip side, if the current hype around Apechain fades and buying strength diminishes, APE might face a downturn. The price could test key support levels at $1.10 and $0.94.

If these supports fail, APE could drop as low as $0.54, representing a potential 60% correction from the current price. The market’s reaction to upcoming developments will be crucial in determining if APE can maintain its upward trajectory or face a significant pullback.

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