ApeCoins Decline Exceeds 9 as Millions of Dollars Are Transferred from Dormant Wallets Whats the Next Move

CoinCircle News Report:
In the past 24 hours, a dormant wallet has transferred 4.58 million Ape tokens, worth $5.22 million.
APE has dropped by 9.86% in the past day.
Over the past month, ApeCoin has experienced continuous growth. However, in the past day, the meme coin has seen a decline. This downward movement on the daily chart has prompted questions about its cause, with SpotonChain pointing the finger at a dormant whale.
Apecoin falls in line with the movement of the dormant whale
According to SpotonChain, dormant wallets associated with ApeCoin have 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 the 2022 ApeCoin distributor have actively transferred their APE. As a result, these wallets have moved 12.47 million tokens worth $17.54 million to Wintermute OTC.
According to SpotonChain’s observations, these transfers to the exchange have played a significant role in the recent market adjustment.
What is the impact on APE?
Typically, when large wallets transfer assets to exchanges, it leads to speculation and selling pressure, thereby pushing down prices. Therefore, in this case, the price chart for Apecoin in the past 24 hours has seen a sharp decline.
In fact, at the time of writing this article, Apecoin’s trading price is $1.17. This marks a 9.86% decline in the past day.
Prior to this, APE was on an upward trend, rising by 64.08% on the weekly chart and 44.41% on the monthly chart.
Therefore, the latest price trend indicates a shift in market sentiment from bullish to bearish as sellers start to dominate.
For example, in the past week, the supply of Apecoin outside of exchanges has decreased. Since October 19, the number of investors holding their assets in private wallets has decreased from 866 million to 839.8 million.
This means that holders are moving their Ape to exchanges ready for sale.
The increase in exchange supply further supports this point. As a result, the supply on exchanges has increased from 134 million Ape tokens to 162 million.
Additionally, Apecoin’s daily active addresses have sharply dropped from 18,872 to 985. This indicates a decrease in demand and fewer investors participating in trading activities. Therefore, investors must wait for another catalyst to enter the market.
Read more: ApeCoin [APE] Price Prediction 2024-2025
In summary, Ape has witnessed a shift in market sentiment. This indicates that the surge on the monthly chart was driven by market speculation brought about by ApeChain’s launch.
Since then, market speculation has cooled down. Therefore, if this shift continues, Ape may further decline to $0.872. However, if this is just a market adjustment, the memecoin will reclaim the resistance level of $1.35.