ApeCoin has surged a remarkable 100% in the last week following the announcement of Apechain and a new staking program.
ApeCoin has surged a remarkable 100% in the last week following the announcement of Apechain and a new staking program. However, on-chain wallet data shows that large-scale investors, commonly known as whales, are not interested in accumulating the token, which raises concerns over the durability of the latest price action.
Data shows that wallet holders holding between one million and 10 million APE tokens decreased from 175 on Sept. 20 to 166 by Oct. 20. Usually, such a drop in whale participation in the market indicates low confidence. Speculative interest rather than fundamental interest appears to be driving the current rally.
To add to these concerns, technical indicators show that the relative strength index (RSI) rose to 78, firmly into overbought territory. Such a reading, so much higher than its RSI of 35 a few days back, is usually indicative of the likelihood of price correction. Overbought conditions combined with whale interest aligned downward do indeed present a precarious situation for the current price levels of APE.
Moving forward, APE has key resistances at $1.82 and $2.07 levels that the token has not seen since early April. A breakout could yield a 38% run-up. Conversely, APE could trade down to the next support at $1.10 and $0.94 if the current hype for Apechain dies down, with potential downside risk all the way to $0.54 – 60% down from current levels.
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