ApeCoin (APE) price increased 100% at the launch of ApeChain.
The price of ApeCoin (APE) increased on October 21, gaining 130% in the last four days of the expected blockchain network, ApeChain.
According to data from Cointelegraph Markets Pro and TradingView, APE rose as much as 104% from a low of $0.861 on October 20 to a six-month high of $1.75 on October 21. The token is trading at $1.53, up 16.5% over the past 24 hours and up 125% over 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.
The launch of Layer-3 ApeChain will increase the value of APE
The price of ApeCoin came on October 21 after the ApeCoin team led by Yuga Labs launched the much-anticipated blockchain network ApeChain.
The Layer-3 blockchain, which went live on Sunday, October 20, is a bridge that allows users to transfer APE tokens, bundle Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI). ) between ApeChain, Ethereum and Arbitrum networks.
Source: ApeCoin
The launch of ApeChain expands the APE service within the Yuga Labs ecosystem, possibly increasing demand for ApeCoin tokens. As a result, APE's trading volume has increased significantly, rising by more than 250%, according to data from Santiment.
APE transaction volume. Source: Santiment
Another factor fueling APE's rally is the integration of the LayerZero Omnichain Fungible Token (OFT) standard into the ApeChain mainnet.
The introduction of LayerZero, a communication protocol that allows applications to move data across the blockchain, will allow APE to function as an ApeCoin DAO governance token and will be used for transaction payments across multiple chains.
Source: LayerZero
Can ApeCoin Continue Price Acceleration?
ApeCoin's recent rise has sparked interest among investors, who are buying its benefits amid “fear of extinction.”
“Too many people must be in FOMO and watching this pump like a beast,” pseudonymous crypto trader Laxman responded in an October 21 post on APE's latest price action.
The trader said that a “real” profit would be made above $1.99 after the APE price produced a critical monthly candlestick.
“APE looks poised for a big breakout from the weekly charts as the down channel prepares to flip!” CryptoBull_360 revealed the affiliate trader on October 21st on X.
“A 260% drop to the $2.75 price zone will result in an ever-rising wave of demand for #Apecoin on #NFT markets.”
APE/USD Weekly Chart. Source: CryptoBull_360
The relative strength index is currently estimated at 88, indicating overbought conditions (when it is above 70) and high chances of a correction.
However, the data shows that APE has a relatively strong base of support compared to the resistance it faces on its recovery path.
For example, IntoTheBlock's Money Around Price (IOMAP) model shows that more than 23.1 million APEs were previously purchased at 9,320 addresses at $1.45 and $1.49.
Increasing purchases from this pool of investors will drive up APE's value.
ApeCoin IOMAP chart. Source: IntoTheBlock
The IOMAP chart above shows that the path of least resistance for APE is up.
Still, the liquidity level to watch APE is $1.65 upside, most active traders use around this level. ApeCoin's rise to $1.65 could lead to the exit of $8.63 million worth of short positions.
Temperature map of APE exchange fluid. Source: CoinGlass
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
