2,100% increase in Whale ApeCoin transactions, what happens to APE price?

There has been a significant increase in whale transactions for several crypto projects, with ApeCoin (APE) leading the way.

The ERC-20 cryptocurrency, affiliated with the Bored Ape Yacht Club (BAYC), saw a staggering 2,102.56% increase in whale transactions over $100,000 in the last 7 days.

Dramatic increase in whale transactions

According to the latest Santiment report x.com/santimentfeed/status/1848861858171916593″ target=”_blank” rel=”noopener” data-wpel-link=”external”>analysisThe figure reflects a 22-fold increase in ApeCoin whale activity compared to its usual levels. This coincided with APE price rising by almost 78% in the last seven days along with an increase of over 833% in trading volume, indicating strong market momentum.

The increase follows the October 20 launch of the long-awaited ApeChain, developed by Yuga Labs, the creators of BAYC. ApeCoin DAO voted in January to develop this Layer 3 network, which is built on Arbitrum One and fully compatible with the APE token. ApeChain supports decentralized, trading, and nft minting applications with the ultimate goal of improving the user experience of the platform.

However, Santiment also warned that when a coin experiences a significant increase in whale transactions (5x or more than usual), its price is likely to move in the opposite direction of its recent trend.

ApeCoin has seen a significant increase in whale transactions along with a strong price rally, which may suggest an upcoming drop. Since its price has been outperforming the broader market, the uptick in whale activity could be an indication that a drop is imminent, which materialized in the form of a 15% correction in the last 24 hours.

Bullish sentiment peaks ahead of correction

Meanwhile, ApeCoin has also had one of the best performances in recent weeks, attracting major FOMO and bullish sentiment as its prices rose.

However, when sentiment turned overwhelmingly bullish, the asset corrected and dropped in price. feeling x.com/santimentfeed/status/1848827884703560159″ target=”_blank” rel=”noopener” data-wpel-link=”external”>explained That this pattern is not unique to meme coins: markets often move in the opposite direction of crowd sentiment. When sentiment becomes extremely bullish or bearish, it signals an ideal point to buy or sell, making price movements more predictable.

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