ApeCoin (APE), like many cryptocurrencies, has experienced a recent price surge following a period of decline. The token is anticipating an unlock event that could impact its price. Despite a significant drop in value by over 19% last week, APE has rebounded, rising over 5% in the last 24 hours, trading at $1.38 with a market cap exceeding $507 million.
The network is awaiting the next unlock set on January 8, which will release 15.6 million tokens worth over $22 million. Historically, APE has seen price drops following unlock events, which could be concerning for investors.
Data from Coingecko suggests that despite the current uptick, the base price of BAYC, associated with APE, continues to fall, indicating a potential downward trend for APE. Santiment data shows a decrease in whale confidence in the cryptocurrency.
The decline in APE held by top addresses over the past week may be influencing this sentiment. However, the market continues to buy APE, with supply decreasing on exchanges and increasing outside of them. Market indicators such as the Money Flow Index (MFI) and Chaikin Money Flow (CMF) are showing bullish signs, suggesting the uptrend could continue at the time of writing.
In conclusion, ApeCoin is facing an unlock event that will release 15.6 million tokens valued at over $22 million. This event could lead to price volatility, as previous unlock events have resulted in price declines for APE.