The Apecoin price soared above $1.90 for the first time in six months after the community passed a proposal to launch a new project on the Arbitrum network.
After a torrid 2023 that saw the Apecoin (APE) price drop to an all-time low, the fortunes of the BoredApeYacht Club governance token have taken a dramatic positive turn in 2024, thanks to strategic whales’ buying trends.
It’s still unclear whether the most recent collaboration with Arbitrum (ARB) will push APE’s price past the $2 mark. Reduced investor interest in the global NFT market has had a major effect on the BAYC ecosystem of Apecoin.
The native APE token price naturally fell during the previous year, hitting an all-time low of $1.01 on October 10 of that year.
New Plans to Revitalize NFT Ecosystem
But in the last month, things have improved as the Apecoin DAO has started implementing new plans to revitalise the once-dominant NFT ecosystem.
February 16th A plan to create ApeChain, a specialised blockchain that scales APE and fosters the expansion of the ApeCoin ecosystem, was put to a vote by the ApecoinDAO.
With 51% of the vote, Arbitrum’s Horizen sidechain easily defeated Polygon’s CDK, Optimism (OP), and Ethereum’s ZKSync.
Investors in Apecoin were receptive to the decision, which caused erratic price movements. The price of APE increased by 18% in the first half of February, based on price patterns.
The price of APE reached a six-month high of $1.90 on February 19, following a 20% increase in price during the next four trading days following the approval of the community proposal in favour of Arbitrum on February 16.
A 13% decline in the price of APE occurred in the last 48 hours, from February 19 to February. 21, giving rise to worries about a sell-the-news bear market cycle.
Examining the on-chain path, the information reveals that whale investors in Apecoin are still holding fast, indicating a long-term positive outlook.
The recent decline in Apecoin seems to have been mostly caused by swing traders and regular investors who quickly booked profits as the price of APE reached a six-month high following the Arbitrum agreement on February 16.
Positively, on-chain data indicates that despite the price decline, corporate entities and high-net-worth whale investors in the Apecoin ecosystem have remained bullish.
Wallets with at least 10 million APE tokens totaling roughly $15 million are shown cumulatively in Santiment’s graphic, indicating that whales have been purchasing since the year’s beginning.
Considering Whales has acquired 21.8 million APE for about $40 million since January 1, as of the time of publication on February 21, balances stood at 61.1 million APE.
Whales have held onto their bullish holdings despite the sharp price volatility of the last week, adding 6.6 million APE to their balances in the midst of the market frenzy.
Market Grows Bullish when There is a Significant Purchase
When whale investors make significant purchases during a time of increased volatility, as was seen in this week’s Apecoin markets, it suggests that institutional traders and huge investors are generally bullish.
The desire to amass sizeable holdings of APE in the face of market instability indicates faith in the project’s long-term viability and optimism that ApecoinDAO’s recent endeavours, such as the Arbitrum cooperation, will benefit the ecosystem as a whole.
Drawing from the optimistic attitude seen in whales With the possible ecosystem boost that the just-created Apechain promises, the price of APE is probably going to start to rise early in the next few weeks, maybe reaching $2.
APE bulls need to first hold the $1.50 support level in order to have a shot at an early rebound due to the current wave of profit-taking.
At the minimum price of $1.50, 9,630 current holders have acquired 268,340 million APE, according to IntoTheBlock’s global in/out of the money chart.
Given that this is the biggest group of investors that purchased APE at a discount to its current price, it seems unlikely that Apecoin will experience a decline below that threshold.
However, the price of APE can drop to $1 if the support wall gives way. Positively, the NFT industry has released a few bullish reports in recent weeks.
Considering BAYC’s development, which has historical significance for the NFT community, it may encourage the APE whales to continue their year-long buying trend.
As expected, the bulls may conduct an early price bounce towards $2 if this scenario comes to pass.
As APE is presently selling 95% below its all-time high of $26.7, investors with keen eyes who want to buy tokens at the bottom may find its growth potential appealing.