ApeCoin price gains at risk as on-chain metrics turn bearish

• ApeCoin price recovery is less likely with bearish on-chain metrics in APE. 
• APE supply on exchanges nearly doubled over the past six months, hitting 50.65 million early on Monday. 
• ApeCoin’s holders are likely to engage in profit-taking, driving APE price lower.

ApeCoin’s on-chain metrics reveal an underlying bearish divergence. APE price gains are therefore unsustainable and a correction in APE is likely in the short term. In the days leading up to the ApeCoin token unlock event on November 17, the asset’s price could rally, despite the bearish outlook from on-chain metrics. 

Also read: dYdX price could crumble under pressure from rising exchange reserves

Bearish on-chain metrics suggest APE price correction

An analysis of active addresses, trade volume and network growth of ApeCoin reveals an underlying bearish divergence. While APE price yielded in the region of 40% gains for holders over the past month, active addresses of the NFT token have dropped. This is a bearish divergence that points at an impending correction in APE. 

Active addresses and APE price

Trade Volume and Network Growth were relatively stable, while Supply on Exchanges (as a % of total supply) climbed. APE reserves across exchanges climbed, supporting a bearish thesis as the NFT token battles intense selling pressure. The supply on exchanges metric too supports a bearish thesis for the token. 

The NFT token’s supply on exchanges has climbed to 50.65 million, on November 13. The rapid rise in APE tokens on exchange platforms suggests holders are preparing to sell and increases the expected selling pressure on the asset, supporting a price decline thesis for the NFT token. 

Supply on exchanges and APE price 

APE’s large wallet investors, holding between 100,000 to 1,000,000 APE tokens, have shed their token holdings rapidly since August 12. This points at an APE price correction in the short term as whales are actively distributing their holdings of the NFT token. 

APE whale wallets distribute their holdings

The overall outlook on APE price is bearish, continuing its overall downtrend, as token holders await the November 17 unlock event. 15.6 million APE worth $22.93 million, a whopping 4.23% of the asset’s supply is set to enter circulation. APE price could continue its climb until the unlock event and note a correction when over 15 million tokens flood crypto exchanges.

At the time of writing, APE price is $1.48 on Binance.

(This story was corrected on November 13 at 13:00 GMT to say that the unlock event will release APE worth $22.93 million, not $22.93.)

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