2100% increase in Whale ApeCoin transactions, what about the price of APE?

There has been a significant increase in whale transactions for various crypto projects, with ApeCoin (APE) leading the pack.

The Bored Ape Yacht Club (BAYC) affiliated ERC-20 cryptocurrency saw a staggering 2102.56% increase in whale transactions of $100,000 or more over the past 7 days.

Dramatic increase in whale transactions

According to Santiment’s latest analysis, the figure reflects a 22x increase in whale activity on ApeCoin compared to its usual levels. This coincided with a nearly 78% increase in APE’s price over the past seven days along with a more than 833% increase in trading volume, indicating strong market momentum.

The increase follows the launch on October 20 of the long-awaited ApeChain, developed by Yuga Labs, the creators of BAYC. The ApeCoin DAO voted in January to develop this layer 3 network, which is based on Arbitrum One and fully supports the APE token. ApeChain supports NFT coining, trading and decentralization applications with the ultimate goal of improving the user experience of the platform.

However, Santiment also warned that when a coin experiences a significant increase in whale transactions, 5x or more than usual, its price is likely to move in the opposite direction of its recent trend.

ApeCoin has seen a significant increase in whale transactions along with a strong price rally, which may suggest an imminent crash. Since its price has been outperforming the broader market, the increased whale activity could be a sign that a decline is imminent, which materialized in the form of a 15% correction over the past 24 hours

Bullish sentiment peaks before the correction

Meanwhile, ApeCoin has also been one of the top performers in recent weeks, attracting significant FOMO and bullish sentiment as its prices surged.

However, as sentiment turned overwhelmingly bullish, the asset corrected and fell in price. Santiment explained that this pattern is not unique to meme currencies: markets often move in the opposite direction of crowd sentiment. When sentiment turns extremely bullish or bearish, it indicates an ideal point to buy or sell, making price movements more predictable.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!