ApeCoin has been the best-performing cryptocurrency of November. Over the past three weeks, its price has surged almost 50%.
However, the latest news about ApeCoin’s staking launch might wipe out all these gains considerably.
ApeCoin (APE) which is currently priced at $4.01 has had a stable November. The credit goes to technical and fundamental factors revolving around the APE.
December Staking Launch a Fundamental Factor for ApeCoin
APE’s price at the start of November diminished to around $2.60, before surging constantly by 50% over the past few weeks.
The APE/USD price recovery was triggered by the same bullish trends which triggered the hikes in the price of other cryptocurrencies such as Bitcoin (BTC), Ether (ETH), etc.
However, the one major difference that the market has noticed is that ApeCoin’s price rise graph has been extraordinarily stable.
The price of ApeCoin did not grow rampantly just within 24 hours. In contrast to the rapid hike, APE’s price rise graph indicates steady growth over the weeks.
Following this stable performance investors once more are putting their hopes and trust in APE’s upcoming staking initiative.
What is the Staking Feature in Crypto?
Crypto staking is like a simple investment. In staking investors put their digital assets in a specific blockchain, the blockchain then holds the crypto assets by locking them up. In return, the investors are rewarded with a specific percentage of return or interest to investors.
Horizon Labs which is developing the staking feature of ApeCoin has announced that the fundamental staking feature will be debuted in the market on December 5, 2022.
With this launch, investors will be able to lock their ApeCoin assets in four different interest pools such as ApeCoin pool, BAYC pool, MAYC pool, and Paired pool. APE will offer a periodic return to its staking investors.
The Increase in APE’s Holders:
It is important to understand that following the current volatility in the cryptocurrency market, investment options such as derivatives, crypto stocks, and crypto staking have become investment options for investors.
Following the news of ApeCoin staking features, there has been a significant increase in the number of people buying APE.
As a result APE’s market cap as of today is around $4.00B and its 24-hours trade volume is at around $6.95M.
The figures published by Dune Analytics have shown that till Dec.2 103,591 have purchased APE. However, at the start of the month of November 2022, the number of people holding the APE was 94,775.
This difference shows that the demand for APE has increased by large.
Crypto Analysts Think the Otherway
Analysts think that the chances are very high for ApeCoin staking feature, to turn into a sell-the-news event.
For instance, a crypto analyst Altcoin Sherpa said that current indicators have clearly shown that ApeCoin is on the bullish run in order to achieve the $5.00 price mark.
The recent staking announcement has further grabbed the interest of investors, meaning the bullish trend is further intensified by this move.
But, how long APE will cope with that bullish trend? Once it will end a drastic fall in the APE’s price is expected, in this situation investors will face massive losses.
Moreover, the return in the form of interest from staking will also diminish.
Technically Speaking — A 30% Drop in the Price is Very Much on the Cards
Technical analysts have already predicted a monumental 30% decline in the price of ApeCoin by the end of December 2022.
APE’s price entered a decline after testing its multi-month falling trend-line resistance at $4.50. This price decline was similar to the trends that occurred several times in the month of August.
That means once the bullish trend will end APE might find itself struggling in between the $2.80-2.50, price range, which precisely accounts for the 30% decline in the price.
But any breach over the price-falling downtrend, on the other hand, might label the expected bearish setup worthless, pushing APE prices to their bullish objective of $6.