The circulation of Ape coin indicates the number of coins being used within a specific period. Over a 7-day period, 21.33 million APE coins were transacted.

The circulation has been steadily decreasing in value, reflecting the diminishing interest of traders and investors in Ape coin for short-term trading. As the circulation dwindles and the price of Ape coin declines, profit-taking activities are observed in the cryptocurrency's daily chart. This trend suggests that holders of Ape coin may encounter challenges when trying to sell or exchange their assets.

Moreover, the decline in demand has had a significant impact on circulation, with fewer buyers willing to engage with Ape coin, resulting in a current display of the coin's price on the daily chart.

Relationship Between Apecoin Price and MVRV Rate

The graph illustrates the connection between the price of Apecoin and the MVRV rate over the last 30 days. The MVRV ratio represents the average profit or loss of investors who acquired Ape coin within the preceding 30 days.

A positive correlation between Apecoin's price and the MVRV rate indicates that they tend to move in the same direction. An increase in Apecoin's price corresponds with a rise in the MVRV ratio, signaling that more investors are profitable and may choose to sell. Conversely, a decrease in Apecoin's price leads to a drop in the MVRV ratio, suggesting that investors are incurring losses and might consider buying more Ape coin.

The chart reveals a decline in the MVRV ratio from 29% to -24% over the specified period. This data implies that Apecoin's 30-day MVRV ratio has decreased, aligning with the struggle between bulls and bears near the demand zone of Ape coin's price. The scenario suggests that further price declines could occur as more investors may opt to sell their holdings.

Summary

In October 2023, Apecoin witnessed a notable price increase from $1.00 to $2.70 before experiencing a crash due to hitting a supply level, resulting in a quarterly decline of 36.13%. Currently, trading at $1.252, the price faces potential further decline if key support at $1.00 is breached.

The decreasing circulation and price of Ape coin reflect traders' waning interest in the short term, leading to profit-taking activities. The combination of low demand and a declining MVRV rate suggests the possibility of price drops as investors may opt to sell their holdings, impacting Ape coin's struggle between bulls and bears near the demand zone on the daily chart.

Technical Levels

Support Levels: $1.00

Resistance Levels: $1.50

Disclaimer

The opinions and views expressed in this article, whether by the author or any individuals mentioned, are solely for informational purposes and do not constitute investment, financial, or any other form of advice. Trading or investing in cryptocurrency assets carries inherent risks of financial loss.