ApeCoin (APE) experienced a significant price increase on October 21, surging by 130% in the past four days due to the highly anticipated launch of the ApeChain blockchain network. Data from Cointelegraph Markets Pro and TradingView indicates that APE started at a low of $0.861 on October 20, reaching a six-month high of $1.75 on October 21, a rise of 104%. As of the time of writing, the ERC-20 governance token was trading at $1.53, representing a 16.5% increase over the past 24 hours and a 125% increase over the past week.
There are several factors driving the bullishness of ApeCoin. Firstly, the launch of the layer-3 ApeChain blockchain network by Yuga Labs has contributed to the surge in price. This cross-chain bridge enables 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 increasing the demand for ApeCoin tokens. Consequently, APE’s trading volume has seen a significant spike of over 250%, according to data from Santiment.
Another factor driving the rally of APE is the integration of LayerZero’s Omnichain Fungible Token (OFT) standard into the ApeChain mainnet. This interoperability protocol allows APE to function as a governance token for ApeCoin DAO and facilitates 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. Many investors have been buying the token in response to its impressive performance. However, it is important to note that the relative strength index currently indicates overbought conditions, suggesting a possible correction in the future.
Despite this, data suggests that APE has strong support on the downside compared to the resistance it faces during its recovery. The IntoTheBlock’s in/out of the money around price (IOMAP) model reveals that a significant number of APE tokens were previously purchased between $1.45 and $1.49 by approximately 9,320 addresses, indicating potential buying support that could boost APE’s price.
Looking ahead, the path of least resistance for APE appears to be upward, according to the IOMAP chart. However, it is important to monitor the liquidation level at $1.65, as a rise to this level could result in the liquidation of approximately $8.63 million in short positions.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.