Apecoin: Bears gain ground as token unlock looms
- With tokens worth $54.41 million, in ten days, Apecoin will host the largest unlock of September.
- APE’s value declined steadily, with only 0.05% of all token holders in profit at press time.
Apecoin’s [APE] price has been falling in the lead-up to a major token unlock event scheduled to take place on 17 September.
Realistic or not, here’s APE’s market cap in BTC terms
According to Token Unlock, the event will see 40.60 million APE tokens, worth an estimated $54.41 million, released to the ecosystem. However, there were concerns that this influx could flood the market and further drive down the metaverse token’s value.
Information from the data provider showed that the unlock distribution would include the release of 2.2 million APE to Yuga Labs founders, 277,000 APE to charity, 7.34 million APE to the project’s treasury, 4.17 million to Yuga Labs, and a cumulative 23 million APE to all launch contributors.
APE has a total supply of 1 billion tokens, with 368.59 million circulating at press time. This represented 37% of the token’s total supply.
The APEs do not feel very good
The price per APE was pegged at $1.33 as of this writing, having recorded a 31% value decline in the last month, according to data from CoinMarketCap.
Due to the significant positive correlation shared with leading coin Bitcoin [BTC], APE’s daily market has been overrun by bears since the BTC futures markets’ deleveraging event of 17 August.
According to readings observed from the token’s Moving Average Convergence/Divergence (MACD) indicator, the MACD line crossed below the trend line on the day of the liquidity flush and has remained so positioned.
A downward intersection of the MACD with the trend line is often interpreted as a bearish signal, as it signifies the commencement of a new bear cycle.
Further, the token’s Stochastic RSI (StochRSI) has trended downward since 17 August. The Stochastic RSI indicator measures momentum and identifies overbought and oversold conditions in the market. With the %K line reading below 20 at press time, APE was oversold amongst daily traders.
Likewise, the token’s Money Flow Index (MFI) trended downward. This indicated that APE sell-offs outpaced accumulation ahead of the token unlock event.
Participants in the token’s futures markets have adopted an even more bearish approach. According to Coinglass, APE’s funding rates across cryptocurrency exchanges have been predominantly negative since 25 July.
How much are 1,10,100 APEs worth today?
Due to the bearish sentiment that has plagued the general market in the past few months, more traders are betting on APE’s price to go down.
Moreover, 99% of all APE holders were deemed to be “out of money” (in loss) at press time. Thus, new holders did not seem to have an incentive to hold on to the tokens released via the unlock event, thus creating the possibility of a further decline in value.