- APE saw a slight uptick in its market capitalization during the intraday trading session on 24 July.
- With the steady decline in APE accumulation, a significant price growth may not occur any time soon.
Leading memecoin Apecoin [APE] kicked off the new trading week with a slight rally in its market capitalization, data from Santiment revealed. This comes despite the fact that Bitcoin [BTC], with which APE has shown a statistically significant positive correlation, continued to trade within a narrow range.
? The week has kicked off with some #memecoin magic, as #Dogecoin, #ShibaInu, & #Apecoin have enjoyed minor market cap rises. As is typically the case with these types of assets, high social volume spikes will signal tops. $DOGE excitement is heating up. https://t.co/Z0w3UXZDzz pic.twitter.com/h0mriBIpXh
— Santiment (@santimentfeed) July 24, 2023
Realistic or not, here’s APE’s market cap in BTC’s terms
Information from the on-chain data provider also showed that the market cap rally was accompanied by a surge in APE’s social activity. According to Santiment, for assets like APE, “high social volume spikes will signal tops” and are often followed by a price reversal.
This metric decries the idea of another local top
To properly time an asset’s local top, the Age Consumed Metric is a key on-chain metric that proves efficient. According to Santiment, it tracks the number of tokens changing addresses on a certain date, multiplied by the time since they last moved.
Typically, a surge in Age Consumed suggests that a significant number of once-idle tokens have begun to change address, hinting at a sudden and strong shift in the behavior of long-term holders.
An assessment of APE’s Age Consumed revealed that the alt experienced a spike on 4 July. The uptick was followed by a fall in APE’s price, meaning that the altcoin clinched a local top at $2.15 and embarked on an uptrend.
Although APE attempted an uptrend a few days later, on 12 July, its value still rested below its last local top. With no spikes in Age Consumed observed at press time, another local top was yet to be reached, reducing the possibility of a price correction.
Source: Santiment
How much are 1,10,100 APEs worth today?
Any “top” is far from sight
An assessment of APE’s price movements on a D1 chart revealed that the alt has moved sideways since 7 July. Moreso, its value was down by almost 15% in the last month, according to data from CoinMarketCap.
APE accumulation has waned in the last month, with some key momentum indicators positioned below their center lines. For example, the meme coin’s Chaikin Money Flow (CMF) returned a negative -0.13 at press time and remained southbound.
A CMF value below the zero line is a sign of weakness in the market, as it indicates liquidity exit. This, coupled with price consolidation, limits the possibility of any price rally that might result in a local top being reached.
Further, the Relative Strength Index (RSI) trended downwards at press time and has been so positioned since 21 July. This confirmed that selling pressure exceeded APE accumulation amongst day traders.
Lastly, buyers’ strength has declined significantly since mid-June, as was gleaned from the alt’s Directional Movement Index. At press time, the negative directional index (red) rested above the positive directional index (red), suggesting that APE sellers controlled the market.
Source: APE/USDT on TradingView
