A high MVRV ratio suggested potential selling pressure for APE holders. A recent data breach negatively impacted public sentiment towards APE.
Based on Santiment’s data, the 1-year MVRV ratio for APE was observed to be much higher compared to other altcoins. This simply meant that most ApeCoin addresses holding APE would generate a profit if they decided to sell.
Now this opportunity could result in a significant amount of selling pressure for the token in the coming future. The reading of the MVRV metric also indicated that APE was in an overbought zone, which could soon initiate a trend reversal.
How much is 1,10,100 APE worth today?
Source: Sentiment
People remain optimistic
However, public sentiment around APE remained mostly positive. This sentiment could change particularly quickly as a result of the recent data breach that happened Yuga Labs.
The data breach occurred because Yuga Labs was using a service called Mailchimp that was compromised. Well, this could certainly lead to a drop in confidence among community members.
Source: Sentiment
Another factor that can affect APE is the status of NFTs associated with the token.
The BAYC NFT (Bored Ape Yacht Club) saw a decline in volume and revenue. Volume for the BAYC collection was down 17.7% and sales were down 5.88% in the past seven days.
Likewise, the MAYC (Mutant Ape Yacht Club) collection also witnessed stagnation. The number of unique active wallets with the NFT collection is down 10.6% in the last 30 days.
In addition, the number of NFT transactions also fell by 8.52% during the same period, according to DappRadar.
Source: Dapp Radar
Staking rewards decrease
Finally, the overall state of APE staking and associated rewards may also contribute to the selling pressure APE holders face. According to Dune Analytics, staking rewards for APE have dropped significantly in recent months.
This could lead to a decline in interest as staking is a popular way for holders to earn passive income. Now, with lower stake rewards, holders may be less inclined to hold onto APE and may choose to sell the token.
Read APE’s price forecast for 2023-2024
Source: Dune analysis
That said, it remains to be seen if the APE holders succumb to the selling pressure or if they continue HODL. Anyway, at the time of writing, the price of APE was $4.58 and it is up 6.77% in the past 24 hours.
This post Decrypt ApeCoin’s [APE] high MVRV ratio and recent data breach
was published first on https://ambcrypto.com/decoding-apecoins-ape-high-mvrv-ratio-and-recent-data-breach/
