ApeCoin jumps 90% as whale takes 14x profit, sparking insider trading concerns

ApeCoin [APE] broke out of a multi-month descending channel and touched a six-month high of $0.28, then retraced. 

As of this writing, ApeCoin traded at $0.20, up 90% on the daily charts. Over the same period, the altcoin’s trading volume rose 6031% and crossed the $1 billion mark, while the market cap rose to $152 million. 

But what’s driving the altcoin’s upward momentum?

ApeCoin whale takes $2.27 million

ApeCoin rose, largely driven by whale activity. However, on-chain monitors have suggested possible insider trading activity.

According to Onchain Lens, a possible APE insider placed two orders (long and short) and made over $2.27 million, a 14x return. The insider deposited 75 ETH, worth $174K, to open long and short positions.

According to Lookonchain, the insider went long APE before the surge and closed near the top, resulting in a $1.79 million profit. He then immediately flipped short and made another $488K.

Futures activity hits ATH, liquidation exceeds $82 million

With the whale turning to speculative trading, the altcoin experienced increased demand for futures positions. 

According to CoinGlass data, Open Interest rose 228% to $119 million, while derivatives volume surged 6460% to $2.9 billion.

Such a surge in both OI and volume suggested increased participation in the Futures market, with traders taking both short and long positions. 

In fact, the Long/Short Ratio remained above 1 across OKX and Binance. However, the overall ratio remained below 1 at 0.95, suggesting higher demand for short positions. 

Interestingly, with the demand for these positions and increased price volatility, the market experienced massive liquidations. 

CoinGlass data showed that the altcoin recorded $82.69 million in total liquidation. Long positions worth $45.6 million and short positions worth $37.08 million were liquidated. 

Profit-taking hits a 6-month high

While the activity was largely recorded on the Futures side, the price uptick brought about increased profit realization.

As ApeCoin jumped to October levels, holders who have remained active through the past months chose to cash out. On the 24th of April, Spot netflow rose to $3.18 million, then dropped to $1.3 million at press time.

A positive netflow suggests that sellers have largely dominated the market. Often, increased selling activity has strengthened downside risk, leading to lower prices.

Despite the selling spree, ApeCoin’s Relative Strength Index (RSI) remained elevated and sat at 88 at press time. RSI levels suggested that buyers remained strongly active in the market and are eyeing another upside move.

If demand holds even with sellers cashing out, APE will hold $0.2 support and flip the EMA 200 at $0.23. However, if the speculation fades and sellers continue to cash out, the altcoin will drop to $0.13, with $0.11 as critical support.

Final Summary

• An ApeCoin whale realized $2.27 million in profit, making a 14x return amid insider trading claims. 
• APE surged 90% to a six-month high of $0.28, then retraced to $0.20 at press time.