Apecoin price fell to a weekly low of $1.30 on Wednesday. However, it later gained 30 percent to over $1.70. On-chain data provides a view into metaverse coin price expectations. Crypto analyst Ibrahim Ajibade examines whether APE can survive.
Apecoin long-term holder wallets increased significantly
Apecoin (APE) is the native token that forms the basis of the popular BoredApeYachtClub (BAYC) NFT ecosystem. The Metaverse coin price hit an all-time low in October. Even, cryptokoin.comAs you can follow from , it has come to the point of losing the $ 1 support level. But since then, APE has recovered 70% to $1.70.
Underlying on-chain data trends show that the resistance shown by APE long-term investors has been crucial to this month’s price recovery. According to IntoTheBlock, the number of long-term and short-term APE addresses is trending positively. The Addresses by Time Held chart below shows that the number of long-term addresses has increased by 6,060 wallets since the beginning of November. Meanwhile, the Apecoin network recorded 3,800 fewer traders/short-term wallets during the said period.
This chart shows the grouping of wallets in a Blockchain network based on the length of time their tokens have been dormant. An increase in the number of long-term investors is usually a bullish signal. First, this means the metaverse coin price will experience less selling pressure. Because these investors move their assets less frequently. Therefore, this positive divergence likely heralds the APE price to move higher.
Bullish traders took control of spot markets
The total exchange order books chart is another vital metaverse coin on-chain metric confirming the bullish momentum. Data obtained from transaction records of 10 crypto exchanges recently shows that the bulls currently have the upper hand. As you can see below, bullish APE traders placed 11.6 million APE buy orders at an average price of $1.40. Sellers offered 11.1 million APE tokens for sale at an average price of $1.95.
Currently demand in the Apecoin market exceeds supply by approximately 500,000 APE. This is a clear indication that the bulls are in the driver’s seat. Logically, when demand for an asset exceeds supply, sellers compete to fulfill their orders quickly. Therefore, relative scarcity puts upward pressure on the price. As a result, many buyers may be tempted to push prices higher towards the bulls’ average price of $1.95 in the coming days.
Metaverse coin price prediction: Possible break above $1.95
From an on-chain perspective, the increasing number of long-term investors and increased demand in Apecoin spot markets will likely drive the price towards $2. Global In/Out of the Money (GIOM) data, which groups existing APE investors according to entry prices, also confirms this prediction. Data shows that 19,110 addresses purchased 72.8 million APEs at a minimum price of $1.96. If these investors exit early, they are likely to trigger an immediate correction in APE price. However, if it breaks this initial sell wall, it is possible for Apecoin price to regain $2 for the first time since August.
Still, the bears may invalidate this positive prediction if the metaverse coin price falls below $1.2. However, in this case, 9,820 addresses that purchased 72.8 million APE at an average price of $1.18 are likely to provide initial support. If these investors HODL solidly, they will most likely prevent APE price from reversing.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!