Over $100 million worth of APE hangs in the balance as ApeCoin price continues to post lower lows

ApeCoin price is a saga of disappointing red candlesticks followed by some stability that eventually turned into another set of red candlesticks. The altcoin has been unable to note a recovery in the past few weeks, and the consequences are beginning to show.

ApeCoin price decline might lead to larger losses

ApeCoin price is trading at $1.87, moving sideways for the past week after losing the support of the crucial psychological support of $2.00. Even though the cryptocurrency has been stuck under the 50-day Exponential Moving Average (EMA) since mid-April, the situation is much more concerning now since a significant portion of supply is close to facing absolute losses.

APE/USD 1-day chart

According to the Global In/Out of Money indicator, at the moment, about 60.79 million APE tokens are on the verge of being pushed to losses. The tokens bought at an average of $2.10 constitute APE that was bought at the lowest price of $1.87, i.e., the trading price. Thus a decline will result in these $109 million worth of tokens being underwater for good. 

ApeCoin GIOM

Consequently, investors could sell their assets in order to offset any further losses since the altcoin is far from exhibiting any signs of recovery. As it is, retail investors’ skepticism has been evident in their behavior over the past few days.

The cohort holding between 10,000 APE to 100,000 APE sold off over 500,000 APE tokens worth nearly a million dollars over the last 48 hours, bringing their supply to 12.05 million APE. 

ApeCoin supply distribution

A further decline would lead to more selling since APE is currently only dependent on broader market cues for a recovery. It is receiving no support from the NFT market despite being based on the Bored Ape Yacht Club (BAYC) NFT collection.