ApeCoin, the cryptocurrency associated with the popular Non-Fungible Token (NFT) market, is showing signs of a potential downturn, as recent on-chain data points to a bearish trend. Despite ApeCoin’s impressive rally of 40% over the past month, market analysts foresee a correction looming on the horizon. This adjustment may become particularly pronounced as South Africa’s crypto community anticipates the ApeCoin token unlock event on November 17, which could impact the asset’s price dynamics in the short term.
A closer examination of ApeCoin’s transactional and network health metrics indicates a discrepancy between recent price gains and network activity. A decline in active addresses, coupled with a static trade volume and network growth, hints at a bearish divergence—a warning sign that current price levels might not hold. Furthermore, the percentage of ApeCoin’s supply on exchanges has witnessed a noticeable uptick to 50.65 million as of November 13, signaling a readiness among holders to sell, which could exert downward pressure on its valuation.
The South African crypto market, which has been increasingly engaged with NFTs and related cryptocurrencies, is taking note of these developments. Large-scale holders, or “whales,” with ApeCoin amounts ranging from 100,000 to 1,000,000, have been diminishing their stakes since mid-August, an action that traditionally precedes a price drop. This sell-off by major investors contributes to the anticipation of a price dip, especially with a significant supply of ApeCoin—4.23% of the total circulation—set to be released soon.
The upcoming unlock event, which will see 15.6 million APE, valued at approximately $22.93 million, released into circulation, is a critical moment for the ApeCoin market. While there may be a continued upward trajectory until the event, the additional tokens hitting the exchanges could lead to increased liquidity and a consequent price correction.
The current market sentiment surrounding ApeCoin is cautious, with a bearish outlook prevailing. As South African investors and global ApeCoin holders alike eye the November 17 token unlock with a mix of optimism for potential gains and realism about the possible market correction, the need for careful market analysis and risk assessment becomes paramount.