ApeCoin has experienced a significant surge of approximately 100% over the past week, driven by the announcement of Apechain and a new staking program. However, this rally has raised concerns among enthusiasts due to waning interest from large-scale investors, commonly referred to as whales.
Following the launch of Apechain, which aims to enhance the utility of ApeCoin within its ecosystem, APE tokens soared, reaching a six-month high. The price increase was initially met with enthusiasm; however, on-chain data indicates that whale participation is declining.
Data reveals that the number of wallets holding between 1 million and 10 million APE tokens decreased from 175 on September 20 to 166 by October 20. This drop in whale interest typically signals low confidence in the sustainability of the price rally.
Analysts suggest that the current price movement may be driven more by speculative interest rather than strong fundamental support. The lack of accumulation by whales raises questions about the durability of the recent gains.
The Relative Strength Index (RSI) has surged to 78, indicating overbought conditions. This sharp rise from an RSI of 35 just days earlier suggests a potential for price correction in the near future.
Looking ahead, APE faces critical resistance levels at $1.82 and $2.07, which have not been reached since early April. A breakout above these levels could lead to a potential 38% run-up in price.
Conversely, if enthusiasm surrounding Apechain diminishes, APE could see a decline towards support levels at $1.10 and $0.94, with further downside risk extending to $0.54, representing a potential decrease of up to 60% from current levels.
The overall market sentiment remains cautious as investors weigh the implications of declining whale interest alongside technical indicators suggesting overbought conditions. As ApeCoin attempts to establish itself in the competitive cryptocurrencies market, its ability to maintain momentum will depend on broader market dynamics and sustained engagement from both retail and institutional investors.