The last month has seen ApeCoin (APE) experience a remarkable increase of 62.18%, with a recent impressive daily growth of 10.71%, hinting at further upward movement in its price trajectory.
It is uncommon for a token experiencing a rally to maintain its momentum amidst an impending token unlock event, typically associated with a bearish market sentiment.
APE Bucks Bearish Trends with Token Unlock Event
Token unlock events involve the periodic release of additional tokens by a blockchain foundation to increase the token’s supply in the market. These events often lead to temporary price declines before and after the unlock. However, ApeCoin is defying this pattern as its price continues to rise even ahead of its upcoming unlock set for November 17th.
The forthcoming unlock will release 15.38 million APE tokens valued at $17.58 million, representing 1.54% of the total locked supply.
A closer look at the reasons behind ApeCoin’s unexpected bullish performance reveals interesting insights.
Whales Pause Selling as Retail Participation Drives APE’s Surge
Large transaction volumes from whales significantly reduced from 34.9 million to 16.37 million on November 13th, indicating a decline in whale activity. This shift has paved the way for retail traders to take a more prominent role in driving the token’s upward momentum.
Analyze the participation of a small yet active group of retail investors through metrics like Daily Active Addresses (DAA), with just 1,280 active addresses influencing APE’s recent price increase.
While the sustainability of these gains remains uncertain, additional on-chain metrics suggest that the bullish trend of ApeCoin might persist.
A Positive Outlook for APE’s Bullish Momentum
On-chain metrics from Coinglass also indicate a positive long-term outlook for APE. Open Interest surged by 24.40%, suggesting growing confidence among long traders in the market’s upward trajectory.
Furthermore, the Funding Rate rose to 0.0297%, indicating bullish sentiment as long traders paid fees to short traders. Exchange Netflows were negative on both daily and weekly scales, with $2.94 million and $8.80 million worth of APE tokens leaving exchanges, hinting at reduced selling pressure and increased demand.
If these metrics continue to favor the bulls, ApeCoin’s rally is likely to extend post the upcoming token unlock event.