ApeCoin [APE]: This latest development can trigger selling pressure
- More than $2.3 million worth of APE was recently transferred to Binance.
- Market indicators and metrics pointed to increased selling pressure for the alt.
ApeCoin [APE] recently rejected a Suggestion which presented the idea of the Forever Apes team that produced 1000 ApeCoin capsules including four stickers, a patch and a poster.
This proposal aimed to increase token accumulation and reduce unauthorized sales through unofficial channels. However, the majority of the ApeCoin community voted against the AIP, hence the rejection.
Interestingly, while this proposal aimed to increase the accumulation of APE, the opposite happened in the market.
To read ApeCoins [APE] price prediction 2023-24
Is selling pressure inevitable?
Lookonchain recently posted a tweet mentioning that an address “0x4BE5” sent 463,137 APE worth over $2.3 billion to Binance.
Transfer address “0x4BE5” 463.137 $APE($2.36M) to #binance 20 minutes ago.
The address received 512.062 $APE On December 6, 2022, January 10, and January 20, 2023, the average reception price is $4.74.
And still has 131,222 $APE staked out.https://t.co/YnLJCVzotd pic.twitter.com/bGDKxA7Ram
— Lookonchain (@lookonchain) February 25, 2023
The transferred addresses APE had received the token in the recent past. This latest transfer from APE underscores the possibility of incoming selling pressure that could push down the price of APE in the coming days.
At press time, APE was down nearly 1% over the past 24 hours. It was trade at $5.07 with a market cap of over $1.86 billion.
Well, the anticipation of selling pressure was also evident with some of the market indicators suggesting that the sellers were dominating the market at press time.
APE’s Relative Strength Index (RSI) dipped below the neutral level in a bearish manner. On the other hand, the Exponential Moving Average (EMA) band indicated that the bears were about to take control of the market as the distance between the 20-day EMA and the 55-day EMA was shrinking.
APE‘s MACD continued to extend the seller advantage as it indicated a bearish crossover. However, although the Chaikin Money Flow (CMF) was below the neutral level, it recorded a slight upward trend, which was a positive signal for APE.
Source: TradingView
Realistic or not, here is APE market cap in BTCs Conditions
The problem is real
Meanwhile, APE’s stock market inflow surged a few times in the past few days, which also meant increased selling pressure.
As APEThe price of declined over the past week, the MVRV ratio fell as well. Thus, there was an indication of a lower level of unrealized gain in the system.
The alt’s on-chain transaction volume also fell due to the price drop. Therefore, considering all datasets, APE could face increased selling pressure in the coming days.
Source: Santiment