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Why ApeCoin’s fortunes could soon change

2min Read

Using the MVRV metric, Santiment noted that APE has left the danger zone. Is an opportunity nearby?

Why ApeCoin’s fortunes could soon change

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  • APE has the potential to reverse its losses if history repeats itself.
  • If buying pressure increases, the number of holders in loss may reduce.

For a while, ApeCoin [APE] holders have had to contend with a significant decrease in token value. This decrease ensured that APE’s 365-day performance exhibited an 80% plunge. 

Is your portfolio green? Check out the APE Profit Calculator

However, the holders of the token may heave a sigh of relief and change the direction of the large negative returns soon, Santiment disclosed. 

An opportunity for APES

Using the Market Value to Realized Value (MVRV) metric, the on-chain analytic platform noted that APE has left the danger zone and jumped into the opportunity area.

By comparing the market value and realized value of an asset, the MVRV can be used to get a sense of a cryptocurrency’s fair value. Hence, the conclusion by Santiment. To assess what the chances of an uptick are, the price-DAA divergence comes into play.

For the uninitiated, the price-DAA divergence is a short form of the price action relationship with the Daily Active Addresses. As a measure of the overall network activity, the DAA is an extremely important indicator to determine a cryptocurrency’s valuation.

At the time of writing, the metric had risen to 57.31%. While there is no theory to suggest an optimal prediction, the current position indicates an entry point. This was because the DAA exhibited signs of an increase while the price decreased. 

ApeCoin price and daily active addresses

Source: Santiment

In a case when the DAA trends downwards, and the price goes in the upward direction, then it could have been a sell signal. But do traders share the same sentiment? Well, ApeCoin’s funding rate may have an answer to this.

Bullish traders want to stop the losses

According to Coinglass, ApeCoin’s eight-hour funding rate was 0.0073%. Funding rates are payments made between long and short-positioned traders. A negative funding rate suggests that traders are bearish on a cryptocurrency. In this instance, shorts pay longs a funding fee.

However, APE’s funding rate being positive means that traders are bullish on the price action. This could remain the same as long as shorts get their funding fee from longs.

ApeCoin funding rate

Source: Coinglass

Read ApeCoin’s [APE] Price Prediction 2023-2024

In the interim, ApeCoin holders in profit were 705,000 as shown by the daily on-chain transaction volume in profit. On the other hand, the on-chain volume in loss was far ahead at 1.59 million.

Should APE succumb to the demands of traders and historical data, then the number of holders in loss would reduce. However, APE would need an increase in buying pressure to neutralize its underbought status for the price to increase.

ApeCoin transaction volume in profit and loss

Source: Santiment


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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