ApeCoin (APE) price jumps 100% on ApeChain launch
2024.10.21 09:54
The price of ApeCoin (APE) was up on Oct. 21, gaining 130% over the past four days amid excitement over the launch of the anticipated blockchain network, ApeChain.
Data from Cointelegraph Markets Pro and TradingView shows APE rose from a low of $0.861 on Oct. 20, climbing as much as 104% to a six-month high of $1.75 on Oct. 21. At the time of publication, the ERC-20 governance token traded at $1.53, up 16.5% over the last 24 hours and 125% in the past week.
APE/USD daily chart. Source: TradingView
Several factors behind ApeCoin’s bullishness include developments surrounding the recently launched ApeChain and a strengthening market structure.
Launch of layer-3 ApeChain boosts APE price
ApeCoin’s price on Oct. 21 came after the launch of the much-awaited blockchain network ApeChain by the ApeCoin team led by Yuga Labs.
The layer-3 blockchain, which went live on Sunday, Oct. 20, is a cross-chain bridge that enables users to transfer APE tokens, Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT) and Dai (DAI) between ApeChain, Ethereum and Arbitrum networks.
Source: ApeCoin
ApeChain’s launch has expanded APE’s utility within the Yuga Labs ecosystem, possibly increasing demand for ApeCoin tokens. As a result, APE’s trading volume has increased significantly, spiking over 250%, according to data from Santiment.
APE trading volume. Source: Santiment
Another factor fueling APE’s rally is the recent integration of LayerZero’s Omnichain Fungible Token (OFT) standard into the ApeChain mainnet.
The introduction of LayerZero, an interoperability protocol that enables applications to move data across blockchains, allows APE to function as a governance token for ApeCoin DAO and is used for transaction fees across multiple chains.
Source: LayerZero
Can ApeCoin price sustain momentum?
ApeCoin’s recent surge has sparked interest among investors, who are increasingly buying the token amid “fear of missing out” on potential gains.
“So many people must be in FOMO watching this pump like a beast,” pseudonymous crypto trader Laxman said in an Oct. 21 X post, responding to APE’s latest price action.
The trader said that the “real” gains would be attained once APE’s price produces a decisive monthly candlestick close above $1.99.
“APE looks ready for a massive breakout from weekly charts as the descending channel ready to flip off!” declared fellow trader CryptoBull_360 in an Oct. 21 post on X.
“Expecting 260% throwback toward $2.75 price zone, Demand for #Apecoin consistently rising on #NFT markets triggering the wave.”
APE/USD weekly chart. Source: CryptoBull_360
The relative strength index is currently valued at 88, which implies overbought conditions (when above 70) and high chances of a correction.
Nevertheless, data reveals that APE has relatively robust downside support compared to the resistance it faces in its recovery path.
For instance, IntoTheBlock’s in/out of the money around price (IOMAP) model reveals that more than 23.1 million APE were previously bought by about 9,320 addresses between $1.45 and $1.49.
Increased buying from this cohort of investors will likely boost APE’s price.
ApeCoin IOMAP chart. Source: IntoTheBlock
The IOMAP chart above shows that the path with the least resistance for APE is upward.
Still, the liquidation level to watch for APE is $1.65 on the upside, with most derivative traders leveraging around this level. ApeCoin’s rise to $1.65 could lead to the liquidation of about $8.63 million in short positions.
APE exchange liquidation heatmap. Source: CoinGlass
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
