There’s been a significant surge in whale transactions for several crypto projects, with ApeCoin (APE) leading the pack.
The Bored Ape Yacht Club (BAYC)-affiliated ERC-20 cryptocurrency experienced a staggering 2102.56% increase in $100K+ whale transactions over the past 7 days.
Dramatic Rise in Whale Transactions
According to Santiment’s latest analysis, the figure reflects a 22x rise in ApeCoin’s whale activity compared to its usual levels. This coincided with the surge in APE’s price by nearly 78% over the past seven days alongside an over 833% increase in trading volume, indicating strong market momentum.
The surge follows the October 20th launch of the much-anticipated ApeChain, developed by Yuga Labs, the creators of BAYC. The 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 NFT minting, trading, and decentralized apps with the end goal of improving the platform’s user experience.
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 experienced a significant increase in whale transactions alongside a strong price rally, which may suggest an upcoming drop. Given that its price has been outperforming the broader market, the uptick in whale activity could be an indication that a decline is imminent, which did materialize in the form of a 15% correction over the last 24 hours.
Bullish Sentiment Peaks Before Correction
Meanwhile, ApeCoin has also been one of the top performers in the past few weeks, attracting significant FOMO and bullish sentiment as its prices surged.
However, as the sentiment became overwhelmingly bullish, the asset corrected and dropped in price. Santiment explained that this pattern isn’t 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.
