On October 21, the price of ApeCoin (APE) saw a significant increase of 130% over the past four days, driven by the excitement surrounding the launch of ApeChain, a highly anticipated blockchain network. According to data from Cointelegraph Markets Pro and TradingView, APE rose from a low of $0.861 on October 20 to reach a six-month high of $1.75 on October 21, marking a 104% increase. At the time of writing, the ERC-20 governance token was trading at $1.53, representing a 16.5% gain over the last 24 hours and a 125% increase over the past week.
The bullishness surrounding ApeCoin can be attributed to several factors, including the launch of ApeChain and the strengthening market structure. ApeChain, a layer-3 blockchain developed by the ApeCoin team led by Yuga Labs, was launched on October 20. This cross-chain bridge allows users to transfer APE tokens, Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) between ApeChain, Ethereum, and Arbitrum networks. The launch of ApeChain has expanded the utility of APE within the Yuga Labs ecosystem, potentially driving up demand for ApeCoin tokens. As a result, APE’s trading volume has increased by more than 250%, according to data from Santiment.
Another factor contributing to APE’s rally is the integration of LayerZero’s Omnichain Fungible Token (OFT) standard into the ApeChain mainnet. LayerZero is an interoperability protocol that enables the movement of data across different blockchains. With this integration, APE can now function as a governance token for ApeCoin DAO and is used for transaction fees across multiple chains.
The recent surge in ApeCoin’s price has attracted the attention of investors who fear missing out on potential gains. Some traders believe that APE’s price will experience significant growth once it produces a decisive monthly candlestick close above $1.99. The relative strength index currently stands at 88, indicating overbought conditions and a high likelihood of a correction.
Despite the possibility of a correction, data suggests that APE has strong support on the downside compared to the resistance it faces during its recovery. The in/out of the money around price (IOMAP) model by IntoTheBlock reveals that over 23.1 million APE were previously bought by approximately 9,320 addresses between $1.45 and $1.49. Increased buying from this group of investors is expected to drive APE’s price higher.
In terms of liquidation levels, APE’s upside target to watch is $1.65, as many derivative traders have leveraged around this level. If ApeCoin reaches $1.65, it could lead to the liquidation of approximately $8.63 million in short positions.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.