ApeCoin dips over 9% as dormant wallets transfer millions – What now?
Apecoin has experienced a strong upswing over the past month. However, dormant wallets are on the move and prices have tumbled.
- A dormant wallet has moved 4.58 million APE tokens worth $5.22 million in the past 24 hours.
- APE has declined by 9.86% over the past day
Over the past month, ApeCoin [APE] has experienced a sustained surge. However, the past day has seen the memecoin decline. This dip on daily charts has brought question over what is causing it and SpotonChain has pointed at dormant whales.
Apecoin declines as dormant whales move
According to SpotonChain, dormant wallets tied to ApeCoin has transferred 4.58 million Ape tokens, worth approximately $5.22 million, to Wintermute Trading OTC.
Since the launch of ApeChain four days ago, three wallets associated with ApeCoin distributor from 2022 have actively moved their APE. As such, these wallets have moved 12.47 million tokens worth $17.54 million to Wintermute OTC.
Based on Spotonchain’s observation, these transfers to exchanges have played a major role in the recent market correction.
Impact on APE?
Usually, when big wallets move their assets into exchanges, it results in speculation and selling pressure, thus driving prices down. As such, in this case, the last 24 hours have seen a sharp decline in Apecoin’s price charts.
In fact, at the time of writing, Apecoin was trading at $1.17. This marked a 9.86% decline over the past day.
Prior to this, APE was on an upward trajectory, hiking by 64.08% on weekly charts with the memecoin gaining by 44.41% on monthly charts.
Therefore, the latest price action shows a shift in market sentiment from bullish to bearish as sellers start to dominate.
For example, Apecoin’s supply outside of exchanges has declined over the past week. Since 19th October, investors holding their assets in private wallets have reduced from 866 million to 839.8 million Ape tokens.
This implies that holders are transferring their Ape to exchanges preparing to sell.
This was further supported by a spike in supply on exchanges. As such, supply on exchanges has increased from 134 million Ape tokens to 162 million.
Additionally, Apecoin’s daily active addresses have experienced a sharp decline from 18872 to 985. This suggests a decline in demand with few investors participating in fewer trading activities. Thus investors have to wait for another catalyst to enter the market.
Read ApeCoin’s [APE] Price Prediction 2024–2025
Simply put, Ape has seen a shift in market sentiment. This suggests that the gains on monthly charts were driven by market speculation arising from the launch of ApeChain.
Since then, market speculation has cooled down. Therefore, if this shift persists, Ape might decline further to $0.872. However, if it’s a mere market correction, the memecoin will reclaim the $1.35 resistance level.
