The price of AppCoin has increased by more than 40% since November 18, giving traders and investors hope for an eventual recovery. However, recent on-chain data paints a different picture of the APE price.
While ApeCoin saw an impressive run over the past few weeks, the +17.48% weekly ROI vs USD tempted many investors to flee. A recent analysis revealed some shocking truths about AppCoin Treasury that could spell trouble for the token’s price.
treasury cashing out
AppCoin appeared to be in trouble after on-chain investigators found some unusual transactions by the AppCoin Treasury. LookOnChain, a smart money tracking and on-chain analysis account, recently discovered that ApeCoin Treasury is selling small amounts of APE tokens.
In a series of tweets, he revealed that a wallet from Apcoin Treasury moved 4.6 million APE worth $19.7 million in the early hours of 30 November. From the looks of it, a large amount of APE tokens were distributed among various addresses. ,
Five ApeCoin treasury wallets transferred APE to Coinbase, Binance, FTX, and KuCoin via the address “0xa29d” for sale.
Also, around the same time on Wednesday, four other ApeCoin treasury wallets used the same method to sell APE. These wallets sold for approximately 20,000 APE for $85,399.
They moved 99.8% of the APE to a new address each time and then moved 0.2% of the APE to exchanges for sale.
In addition, Jeffrey Huang, also known as Machi Big Brother, sold 150,000 APE valued at $631,295 at an average selling price of $4.21. NFT whales have been observed buying APE at low and selling at pump.
The recent heavy APE selling could significantly influence the APE price action.
How is APE price reacting?
APE price was still up 23.80% on the weekly window, but the recent selloff could spell trouble for APE price action. Taking a look at the token’s on-chain metrics can help assess where the price is headed in the short term.
The exchange flow balance remains positive, presenting more exchange flows which is a bearish trend.
However, active deposit plateaus and dominating flows suggest that tokens were being sent to exchanges – a bearish trend.
During the last week following the release of the final staking details and the official ApeCoin NFT marketplace rollout, APE price saw an increase of over 40%. With the price rising, many short-term participants could decide to take profits.
Looking at the in/out of the money around the price indicator for APE, it was clear that as the bears loom over the price action, the $4.00 mark could provide relief to holders. The $4.07 mark, where 1,080 addresses hold 15.59 million APE tokens, could be a good support level.
However, a pullback below the $4 mark could spell trouble for the coin, especially after the recent selloff.
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