APE - Buy the rumor, sell the Stake?
Assets covered: $APE
Metrics used: Network Growth, Active Withdrawals, Supply Distribution, MVRV 30D,
HorizenLabs recently announced that pre-deposit for $APE staking will go live on December 5th, and the market is reacting accordingly.
Let's observe what's happening on-chain.
Following HorizenLabs' update, we can observe spike in Network growth as price continues to rally, indicating that folks are chasing the price to get maximum yields for staking.
Previously, we do observe that huge spike in Network Growth, following a huge rally, typically indicates a top as seen around early August this year.
There was another time where Network Growth spiked but the inversed happened. A strong downtrend with strong spike in Network Growth marked a bottom.
Do note this spike in network growth around 2nd week of Nov is likely due to FTX's implosion, prompting folks to self-custody, and sentiment was probably max fear during then.
Active Withdrawals shows that folks were accumulating at the top back in early August, which is behavior that is quite typical of retail.
Currently we are seeing growing Active Withdrawals as prices continue to rally.
Supply Distribution - By Number of Addresses is showing that:
Whales continue to decrease after FTX's implosion, even with Staking coming, they are not interested.
Retail continues to accumulate into the launch date. Looks like distribution is happening.
APE's MVRV 30D which measures the short-term profit/loss of holders is showing that we are now in the Danger Zone, where historically saw APE’s price decline shortly after as a local top form.
This would coincide well leading towards the APE pre-deposit staking on Dec 5.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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