- Large investors chose to hold onto their tokens rather than sell them ahead of the token unlock event.
- Retail traders have been accumulating APE, driving up its price.
Over the past month, ApeCoin (APE) has surged 62.18%, with bullish momentum continuing to generate gains. In fact, its most recent daily rise of 10.71% highlighted the possibility of further movements on the price charts.
Such a sustained rally defies typical market behavior. Especially since token unlock events are usually associated with bearish market sentiment.
APE Token Unlock Defies Bearish Expectations
A token unlock refers to the scheduled release of additional tokens by a blockchain foundation, usually carried out periodically. These events aim to increase the supply of tokens in the market. This often causes prices to drop in the days or hours before and after unlocking.
However, APE is bucking this trend, with its price currently on the rise.
The next unlock, scheduled for November 17, will release 15.38 million APE tokens worth $17.58 million. This release will represent 1.54% of the total locked supply.
This is why AMBCrypto examined the reasons for APE’s atypical bullish performance ahead of the unlock.
Whales Halt Sales as Retailers Drive EPA Momentum
Whales appear to have reduced their selling activity for the APE. This is evidenced by the significant drop in large transaction volumes, which fell from 34.9 million to 16.37 million on November 13, according to IntoTheBlock.
This decline in whale activity has coincided with a rise in prices, generally a sign of confidence among larger holders. With the whales receding, retail traders have become the main drivers of the token’s recent momentum.
Source: In the block
Further analysis highlighted the role of a small but active group of retail participants. Daily active addresses (DAA), a metric that tracks unique wallet activity, stood at just 1,280 at press time. This suggests that this cohort played a key role in influencing the latest rise in APE.
Today, the sustainability of these achievements remains uncertain. However, AMBCrypto’s evaluation of additional on-chain metrics seems to indicate that the APE uptrend may continue.
APE Bullish Momentum Expected to Persist
Here, it is worth pointing out that Coinglass’ on-chain metrics also hint at a long-term bullish outlook for APE.
Open Interest, which tracks total unsettled APE futures, rose 24.40%. This suggests that long traders have been actively adding to their positions – a sign of growing confidence in the market’s upward trajectory.
Source: Coinglass
The funding rate also remained positive, climbing to 0.0297%. This means that long traders pay fees to short traders – a key indicator of bullish sentiment.
Read ApeCoin (APE) Price Prediction 2024-2025
Finally, net exchange flows were negative on both the daily and weekly time frames, with $2.94 million and $8.80 million worth of APE tokens leaving exchanges, respectively. This can be interpreted as hinting at lower selling pressure and higher demand.
If these metrics maintain their bullish stance, the APE rally is likely to extend beyond the next token unlock.
