The price of ApeCoin (APE) has surged nearly 100% in the last seven days following the announcement of Apechain and APE’s staking program. Despite this rally, whales are not accumulating more APE, indicating a lack of confidence in the sustainability of this price increase.

The number of wallets holding between 1 million and 10 million APE has actually decreased, suggesting that the recent momentum might be driven more by hype than strong fundamentals. As APE reaches overbought conditions, the potential for a correction remains a significant risk.

Whales Are Not Accumulating APE

Despite the hype around the launch of Apechain, the number of wallets accumulating large amounts of APE is not increasing. Specifically, the count of holders with between 1 million and 10 million APE has been steadily decreasing, dropping from 175 on September 20 to 166 by October 20.

This trend indicates that big investors, often referred to as “whales,” are not yet confident enough to increase their positions.

Read more: ApeCoin (APE): Everything You Need To Know

This metric is important because whale activity often reflects broader market sentiment. When large holders accumulate, it typically signals strong confidence in the asset’s future growth potential.

Even with the recent price surge in APE, whales appear cautious, suggesting that they may not believe this rally is sustainable. Until these major players start accumulating, a continued price uptrend remains uncertain.

ApeCoin RSI Shows an Overbought State

APE’s Relative Strength Index (RSI) is currently at 78, up significantly from 35 just a few days ago. This sharp increase in RSI reflects the recent s

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Author: Tiago Amaral