ApeCoin Price Rockets on New Blockchain Launch
21 Oct, 2024 ● Coin news
ApeCoin (APE) saw a significant price increase on Oct. 21, surging 130% over the past four days, driven by excitement surrounding the launch of the new blockchain network, ApeChain.
According to TradingView data, APE climbed from a low of $0.861 on Oct. 20, reaching a six-month high of $1.75 on Oct. 21, marking a 104% rise.
As of publication, the ERC-20 governance token was trading at $1.53, up 16.5% in the last 24 hours and 125% over the past week.
The price surge is attributed to the developments linked to the launch of ApeChain and improvements in the market structure.
The increase in ApeCoin’s price on Oct. 21 followed the launch of ApeChain, a much-anticipated blockchain network created by the ApeCoin team, led by Yuga Labs.
This new layer-3 blockchain, which went live on Oct. 20, functions as a cross-chain bridge, allowing users to transfer APE tokens, Wrapped Ethereum, USDC, USDT, and DAI between ApeChain, Ethereum, and Arbitrum networks.
The introduction of ApeChain has expanded ApeCoin’s utility within the Yuga Labs ecosystem, likely driving increased demand for APE.
As a result, APE’s trading volume has surged, increasing by over 250%, as reported by Santiment.
Another factor contributing to APE’s rally is the recent integration of LayerZero’s Omnichain Fungible Token (OFT) standard into the ApeChain mainnet.
LayerZero, an interoperability protocol that facilitates data transfers across blockchains, now allows APE to serve as a governance token for ApeCoin DAO and be used for transaction fees across multiple chains.
The recent surge in ApeCoin’s price has sparked interest among investors eager not to miss potential gains.
“So many people must be in FOMO watching this pump like a beast,” said pseudonymous crypto trader Laxman in an Oct. 21 X post, responding to APE’s price action.
The trader suggested that significant gains would come once APE closes the month above $1.99.
Another trader, CryptoBull_360, noted on X that APE looks set for a major breakout on weekly charts, predicting a potential 260% rally toward the $2.75 zone, driven by rising demand for ApeCoin in NFT markets.
The relative strength index (RSI) for APE is currently at 88, indicating overbought conditions and a possible correction, as values above 70 suggest.
Despite this, data shows APE has stronger downside support than resistance on its recovery path.
IntoTheBlock’s in/out of the money around price (IOMAP) model indicates that over 23.1 million APE were bought by roughly 9,320 addresses between $1.45 and $1.49.
Increased buying from this group of investors could help boost APE’s price.
The IOMAP model suggests that APE’s path of least resistance is upward. However, the key level to monitor is $1.65, as many derivative traders are leveraging around this price.
A move to $1.65 could trigger the liquidation of approximately $8.63 million in short positions.
Sources:
https://cointelegraph.com/news/apecoin-ape-price-jumps-100-apechain-launch
https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE
https://www.tradingview.com/x/YINnDezu/
https://x.com/apecoin/status/1847731599141482703
https://x.com/LayerZero_Core/status/1848074896892379598
