What to Do Now as ApeCoin Drops Over 9 Due to Transfer of Millions of Dollars from Dormant Wallets

CoinWorld reported:
In the past 24 hours, a dormant wallet has transferred 4.58 million APE tokens, worth $5.22 million.
APE has declined by 9.86% in the past day.
Over the past month, ApeCoin has experienced continuous growth. However, in the past day, the meme coin has seen a decline. This drop on the daily chart has raised questions about its cause, with SpotonChain pointing fingers at the dormant whale.
Apecoin falls in line with the movement of the dormant whale
According to SpotonChain, dormant wallets associated with ApeCoin have transferred 4.58 million Ape tokens (worth approximately $5.22 million) to Wintermute Trading OTC.
Since the launch of ApeChain four days ago, three wallets associated with the 2022 ApeCoin distributor have actively moved their APE. As a result, these wallets have transferred 12.47 million tokens worth $17.54 million to Wintermute OTC.
According to SpotonChain’s observations, these transfers to the exchange have played a significant role in the recent market adjustment.
Impact on APE?
Typically, when large wallets transfer assets to exchanges, it leads to speculation and selling pressure, thereby pushing prices down. Therefore, in this case, the price chart of Apecoin has experienced a sharp decline in the past 24 hours.
In fact, at the time of writing this article, Apecoin is trading at $1.17. This marks a 9.86% decline in the past day.
Prior to this, APE was on an upward trend, rising by 64.08% on the weekly chart and 44.41% on the monthly chart.
Thus, the latest price trend shows a shift in market sentiment from bullish to bearish as sellers start to dominate.
For instance, in the past week, the supply of Apecoin outside of exchanges has decreased. Since October 19, the number of investors holding assets in private wallets has decreased from 866 million to 839.8 million.
This indicates that holders are moving their Ape to exchanges for potential sales.
The increase in exchange supply further supports this point. The supply on exchanges has increased from 134 million Ape tokens to 162 million.
Additionally, the daily active addresses of Apecoin have dropped from 18,872 to 985. This indicates a decrease in demand and fewer investors engaging in trading activities. Therefore, investors must wait for another catalyst to enter the market.
Read more:
ApeCoin [APE] Price Prediction
2024-2025
In summary, Ape has witnessed a shift in market sentiment. This suggests that the surge on the monthly chart was driven by market speculation following the launch of ApeChain.
Since then, market speculation has cooled down. Therefore, if this shift continues, Ape could further decline to $0.872. However, if this is just a market adjustment, the memecoin will reclaim the resistance level of $1.35.