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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