At first, positive sentiment around #ApeCoin drove its price up, but excessive bullish sentiment indicated a potential correction, which materialized in a 15% drop over the past day.
ApeCoin Sees a Significant Surge in Whale Transactions
Several crypto projects have witnessed a notable increase in whale transactions, with ApeCoin ($APE ) leading the pack. The ERC-20 cryptocurrency associated with Bored Ape Yacht Club (BAYC) saw an astonishing 2102.56% increase in whale transactions over the past week, with transactions exceeding $100,000.
Dramatic Rise in Whale Activity
According to the latest analysis by Santiment, this figure reflects a 22x increase in ApeCoin whale activity compared to its usual levels. This surge coincided with a nearly 78% price increase for APE over the last seven days, along with a trading volume spike of over 833%, indicating strong market momentum.
The increase followed the highly anticipated launch of ApeChain on October 20, developed by Yuga Labs, the creators of BAYC. ApeCoin DAO voted for the development of this layer 3 network back in January, which is built on Arbitrum One and fully compatible with the APE token. ApeChain supports NFT minting, trading, and decentralized applications, with the goal of enhancing the platform's user experience.
Warning of a Potential Correction
However, Santiment also warned that when a coin sees a significant rise in whale transactions—typically 5x or more than usual—its price tends to move in the opposite direction of its recent trend. For ApeCoin, which has experienced a sharp increase in whale transactions, this could signal an impending price drop. This scenario has already begun to play out, with APE's price experiencing a 15% correction over the last 24 hours.
Bullish Sentiment Peaks Before Correction
In recent weeks, ApeCoin has been one of the best-performing assets, attracting significant FOMO and bullish sentiment as its price climbed. However, as sentiment became overwhelmingly bullish, the asset corrected, and its price dropped. 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 for buying or selling, making price movements more predictable.

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#ApeCoin (APE), the native token of the $APE
ecosystem, has added 66% in value over the past 24 hours.

At the time of writing, the cryptocurrency's #exchange rate has surpassed $1 and may continue to rise. Let's figure out with the help of technical indicators and onchain metrics what the reason for the sudden rally is.

The launch of ApeChain has drawn attention to ApeCoin

One of the reasons for the sharp rise in the APE price was the launch of the Layer-3 #apechain network developed by ApeCoin #DAO called Arbitrum Orbital Chain. As a result, the token is back in the top 100 cryptocurrencies by market capitalization.

The project team said on Twitter that bridges are already active and users can access the blockchain.

“Bridges are active. Transfer your tokens to ApeChain now to start earning in APE, ETH and various stablecoins,” ApeCoin announced.

Within three hours of the launch, Camelot - an Arbitrum-based DEX - reported that ApeChain volume had surpassed $5 million, a trend that received additional support from ApeCoin's overall onchain volume.

According to Santiment data, the volume has increased by nearly 3,000% in the last 24 hours and is approaching the $1 billion mark. If the figure continues to rise along with the price, the altcoin's exchange rate could exceed $1.25 in the coming days.

The APE network has recently shown remarkable growth, tracked by the number of new addresses that have begun interacting with the protocol. As of October 18, the number stood at 83. By the time of this writing, the number of participants has increased to 3,235.

This indicates that more people are starting to use the APE token. If the trend continues, demand for APE could increase, which in turn would potentially increase the price of the altcoin.

APE price prediction: a possible rise to $2

From a technical point of view, ApeCoin has come out of a downtrend that has lasted since June. All this time, the price of the altcoin fluctuated between $0.55 and $0.85.

Now, the Moving Average Convergence and Divergence (#MACD ) indicator is showing significantly positive values, which has not been the case for almost a month. MACD measures momentum, where negative values indicate bearish momentum and positive values indicate bullish momentum.

If investors remain interested in APE, its price could reach $1.47 and even rise to $2.

However, if APE holders who did not sell the token during the long slump decide to lock in profits, the altcoin will face a correction to $0.86.