ApeCoin (APE): What Next after More than 50% Rally

ApeCoin is a BAYC’s native token. The alternative currency saw remarkable upswings over the previous week. APE gained over 50% within a week as its developer community revealed a massive Metaverse project. Such developments saw the altcoin surging towards $18, even overtaking Decentraland (MANA) as the largest Metaverse coin.

Nevertheless, some on-chain metrics saw substantial divergence for ApeCoin. Such developments could prompt sell-offs soon.

Trend Shift to the Worse?

For example, the latest report by Santiment cautioned market players who could be highly bullish on ApeCoin as the alt continued to trend. The analytic farm questioned APE’s previous rally sustainability by highlighting some divergence in the token’s on-chain data.

Perhaps, the Market Value to Realized Value is the most utilized and significant on-chain index for ApeCoin price.

The MVRV ratio stays HIGH over a specific period. Readings beyond one show the market capitalization exceeds the realized one. Massive high ratios indicated overvalued market conditions. That might enhance the surging risks of a possible APE sell-off.

Furthermore, ApeCoin Network Growth remained stagnant, according to the report. It even noted declines in this publication. The index appeared to hover near 900 after touching the highs of above 2000 on April 20.

Things seemed worse as ApeCoin’s social and trading volume failed to reciprocate the bullish move than accompanied the token’s 50% surge. These metrics maintained consolidations.

Taking a Mock

While publishing this blog, the token suffered an about 2% price drop to trade near the $16.2 level. Furthermore, various celebrated investors revealed worriers about the project.

Renowned cryptocurrency expert Cobie stated that ApeCoin’s governance proposal couldn’t fit the affiliated coin. Moreover, Cobie criticized the ‘affiliated’ token concept by Bored Ape. Nevertheless, that did not discourage investors’ morale as addresses holding the token kept increasing.

The broad market continued to battle bearishness. The crypto market capitalization of all digital coins saw a 0.94% drop within the past 24 hours, hovering near $1.83 trillion. Also, Bitcoin remained below the coveted $40,000, trading at $39,536.29, following a 0.63% drop over the past day.

Stay tuned for the latest developments in the crypto space.

Editorial credit: David Esser / shutterstock.com