ApeCoin (APE) price has rebounded to a three-month peak of $1.50 on Nov. 9, marking a 35% price bounce from 30-days ago. On-chain analysis examines the long-term sustainability of the ongoing ApeCoin price recovery.

ApeCoin investors remain unconvinced of a long-term recovery of the ecosystem despite the recent double-digit price gains. Is the APE price at risk of a major price reversal? 

ApeCoin Futures Traders Have Continued to Fold Despite Price Rally

ApeCoin and other top NFT-related assets have attracted investor interest in the recent weeks amid the crypto market rally. After hitting an all-time low in mid-September, APE price has rebound toward the $1.50 area.

However, recent derivatives market data trends suggests a lack of bullish conviction among current APE investors. 

Between Oct. 20 and Nov. 10, APE open interest has declined by a staggering 30% despite the double-digit price gains during that period. As seen in the Velo chart below, APE aggregate open interest dropped from $55 million to $38 million, representing a $17 million (30%) decline.  

Open Interest represents the total value of active derivatives trading contracts for a particular asset. Typically, a decline in open interest during a market rally implies that reduced market participation and lack of conviction in the current price uptrend. 

As more investors close out their positions than new market entrants, it could impact APE spot price negatively in the days ahead. 

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

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Author: Ibrahim Ajibade

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