ApeCoin likely heading for pullback as on-chain metrics flip bearish

ApeCoin supply on exchanges climbs steadily, indicating an increase in selling pressure.
The metaverse token witnessed a decline in its social dominance and daily active address count, suggesting lack of interest among market participants.
APE price struggles to recover from its decline below the $3.33 level in June.

ApeCoin, one of the largest metaverse tokens in the ecosystem, is struggling to recover as the selling pressure on the asset seems to be on the rise. The ERC-20 governance and utility token’s on-chain metrics have flipped bearish this week, signaling that a further pullback in APE price is likely.

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ApeCoin on-chain metrics paint bearish picture

On-chain metrics like daily active addresses, social dominance and supply on exchanges have turned bearish for APE this week. This is key for APE holders and market participants as changes in on-chain metrics are likely to influence sentiment among traders.

Based on data from crypto intelligence tracker Santiment, the total count of daily active addresses on the APE network, on a 24-hour timeframe, was slashed in half this week. On Monday, the number of active addresses stood at 2,032, falling to a 1,051 at the time of writing.

APE price vs daily active addresses (24h)

Moreover, social dominance– a metric that measures the mentions of a project among market participants on social media platforms like X – showed a steady decline. This is considered bearish for the metaverse token as it implies that traders are likely losing interest in it. .

APE Social dominance vs price

Supporting the bearish thesis presented by the above two metrics, the token’s supply on exchanges has climbed steadily since Monday this week. APE supply on exchanges is up from 28.62 million to 29.14 million at the time of writing. Typically, a rise in a token’s supply on exchanges increases the selling pressure on the asset and results on price declines..

APE supply on exchanges (black) vs price

As seen on Binance, ApeCoin price is struggling to make a comeback from its June 5 drop below the $3.3 level. APE price attempted to recover throughout July, with no avail. At the time of writing, APE price is at $1.965.

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