- A dormant wallet moved 4.58 million APE tokens worth $5.22 million in the last 24 hours.
- APE is down 9.86% in the past day
Over the past month, ApeCoin [APE] has seen a sustained increase. However, in the past day, the memecoin has fallen. This dip on the daily charts has raised questions about its cause and SpotonChain has pointed to sleeping whales.
Apecoin falls as sleeping whales move
According to SpotonChaindormant wallets linked to ApeCoin transferred 4.58 million Ape tokens, worth approximately $5.22 million, to Wintermute Trading OTC.
Source: Spotonchain
Since the launch of ApeChain four days ago, three wallets associated with 2022 ApeCoin distributor have actively moved their APE. As such, these wallets moved 12.47 million tokens worth $17.54 million to Wintermute OTC.
Based on Spotonchain’s observation, these transfers to exchanges have played a significant role in the recent market correction.
Impact on APE?
When major wallets move their assets to exchanges, it typically results in speculation and selling pressure, causing prices to fall. As such, in this case, we have seen a sharp decline in Apecoin’s price charts over the past 24 hours.
At the time of writing, Apecoin was trading as high as $1.17. This represented a decline of 9.86% over the past day.
Previously, APE was in an uptrend, rising 64.08% on the weekly charts, while the memecoin gained 44.41% on the monthly charts.
Therefore, the latest price action shows a shift in market sentiment from bullish to bearish as sellers begin to dominate.
For example, Apecoin’s supply outside the exchanges has decreased over the past week. Since October 19, the number of investors holding their assets in private portfolios has been reduced from 866 million to 839.8 million Ape tokens.
Source: Santiment
This involves holders transferring their Ape to exchanges that are preparing for sale.
Source: Santiment
This was further supported by a spike in supply on the exchanges. As such, supply on the exchanges has increased from 134 million Ape tokens to 162 million.
Source: Santiment
Furthermore, Apecoin’s daily active addresses have undergone a sharp decline between 18872 and 985. This indicates a decline in demand, with few investors participating in fewer trading activities. So investors have to wait until a new catalyst comes to the market.
Read ApeCoins [APE] Price forecast 2024–2025
Simply put, Ape has seen a shift in market sentiment. This suggests that the gains on the monthly charts were driven by market speculation following the launch of ApeChain.
Since then, market speculation has cooled. Therefore, if this shift continues, Ape could fall further to $0.872. However, if it is purely a market correction, the memecoin will regain the $1.35 resistance level.
