Coin World Report:
Whale trading volumes have significantly increased for several cryptocurrency projects, with ApeCoin (APE) leading the way.
In the past 7 days, the ERC-20 cryptocurrency belonging to the Bored Ape Yacht Club (BAYC) has experienced an astonishing 2102.56% growth in whale trading volumes, surpassing $100,000.
Sharp Rise in Whale Trading Volumes
According to the latest analysis from Santiment, this figure reflects a 22-fold increase in whale activity for ApeCoin compared to usual. This aligns with the nearly 78% surge in APE price and over 833% growth in trading volume in the past seven days, indicating strong market momentum.
This surge follows the launch of the highly anticipated ApeChain on October 20th by Yuga Labs, the creators of BAYC. ApeChain, built on the Arbitrum One layer 3 network, was developed based on a vote by the ApeCoin DAO in January, making it fully compatible with the APE token. ApeChain supports NFT mining, trading, and decentralized applications, with the ultimate goal of improving the platform’s user experience.
However, Santiment also warns that when a coin’s whale trading volume significantly increases – by five times or more than usual – its price may move in the opposite direction of the recent trend.
The substantial increase in whale trading volume for ApeCoin, coupled with its strong price rise, may indicate an upcoming price decline. Given its consistent outperformance in the market, the increase in whale activity could signal an impending price drop, which has indeed seen a 15% pullback in the past 24 hours.
Peak of Bullish Sentiment before Correction
Meanwhile, ApeCoin has also been one of the top-performing assets in recent weeks, attracting a significant amount of FOMO and bullish sentiment as its price soared.
However, as the market sentiment became overwhelmingly bullish, the asset underwent a correction, resulting in a price decline. Santiment explains that this pattern is not unique to meme coins, as the market often moves opposite to public sentiment. When market sentiment becomes extremely bullish or bearish, it indicates ideal points for buying or selling, making price trends more predictable.
