Should ApeCoin holders continue to HODL

• ApeCoin hold­ers face finan­cial loss­es as 95% expe­ri­ence neg­a­tive returns.
• Ris­ing neg­a­tive sen­ti­ment, declin­ing net­work growth, and dom­i­nance of short-term hold­ers pose chal­lenges for ApeCoin’s price.

The Yuga Labs NFT col­lec­tion has enjoyed sig­nif­i­cant dom­i­nance in the NFT mar­ket for quite some time. How­ev­er, despite the immense inter­est sur­round­ing these NFTs, ApeCoin has not wit­nessed a cor­re­spond­ing growth in its val­ue. Recent data reveals poten­tial chal­lenges for ApeCoin and its holders.

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Not Apeing in

Accord­ing to Pauly, the founder of Not­Lar­vaL­abs, an alarm­ing 95% of ApeCoin hold­ers find them­selves in a state of finan­cial loss.

While the prices have declined, the Yuga Labs team and launch con­trib­u­tors were observed reward­ing them­selves with sub­stan­tial amounts of APE tokens through token unlocks. This behav­ior rais­es con­cerns about the per­cep­tion of ApeCoin with­in the market.

More­over, Santiment’s data indi­cat­ed a sub­stan­tial surge in neg­a­tive sen­ti­ment sur­round­ing ApeCoin in recent days. This sud­den shift in sen­ti­ment could fur­ther impact ApeCoin’s price and mar­ket dynam­ics mov­ing forward.

Ana­lyz­ing the social aspect, it is note­wor­thy that social men­tions and engage­ment for ApeCoin have seen an 18% and 51% increase, respec­tive­ly, over the past week.

Although such pop­u­lar­i­ty appears promis­ing, when com­bined with the pre­vail­ing neg­a­tive sen­ti­ment, it cre­ates a chal­leng­ing envi­ron­ment that might exert down­ward pres­sure on ApeCoin’s price.

Source: San­ti­ment

One sig­nif­i­cant fac­tor con­tribut­ing to the decline in ApeCoin’s price was the dimin­ish­ing net­work growth. Over the past three months, there has been a notice­able decrease in inter­est from new address­es regard­ing APE.

Addi­tion­al­ly, the trad­ing fre­quen­cy of APE, as indi­cat­ed by its veloc­i­ty, has also expe­ri­enced a decline dur­ing this period.

Inter­est­ing­ly, despite these chal­lenges, whales con­tin­ue to demon­strate inter­est in APE. This is evi­dent from the grow­ing per­cent­age of APE held by large addresses.

While this may pro­vide a tem­po­rary boost to ApeCoin’s price, it is essen­tial to rec­og­nize the poten­tial vul­ner­a­bil­i­ty of retail investors to the behav­ior of these whale investors due to the con­cen­tra­tion of APE in their possession.

What does the future hold for APE?

As a result of the falling price, the MVRV ratio of APE has decreased, sug­gest­ing that many APE hold­ers lack sig­nif­i­cant incen­tives to sell their hold­ings at the cur­rent juncture.

Addi­tion­al­ly, the Long/Short dif­fer­ence indi­cates that short-term hold­ers dom­i­nate the APE mar­ket, poten­tial­ly lead­ing to sell-offs once APE becomes prof­itable in the future.

Source: San­ti­ment

Real­is­tic or not, here’s APE’s mar­ket cap in BTC terms

Giv­en these cir­cum­stances, traders have main­tained a bear­ish stance, with short posi­tions sur­pass­ing long posi­tions accord­ing to coin­glass’ data. This sen­ti­ment reflects the pre­vail­ing con­cerns sur­round­ing ApeCoin and its future trajectory.