ApeCoin (APE) experienced a significant price surge, gaining 130% over four days due to the launch of the anticipated blockchain network, ApeChain. According to data from Cointelegraph Markets Pro and TradingView, the price of APE jumped from $0.861 on October 20 to a high of $1.75 on October 21, reaching a six-month peak. At the time of writing, APE was trading at $1.53, showing a 16.5% increase in the last 24 hours and a 125% rise over the past week.
The major factor contributing to ApeCoin's bullish trend is the launch of ApeChain, a new blockchain network developed by Yuga Labs, which went live on October 20. ApeChain is a layer-3 cross-chain bridge, enabling users to transfer APE tokens, Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) between different networks like Ethereum and Arbitrum.
This new utility has expanded the use case for APE tokens, leading to a substantial increase in trading volume. According to Santiment, trading volume for APE spiked over 250% after the ApeChain launch.
Another key element driving the surge is integrating LayerZero’s Omnichain Fungible Token (OFT) standard into ApeChain. LayerZero is an interoperability protocol that facilitates seamless data transfer across different blockchains. This integration allows APE to function as a governance token for the ApeCoin DAO and can be used for transaction fees across multiple blockchains, further enhancing its appeal and demand.
ApeCoin’s recent rise has caught the attention of investors, with many rushing to buy the token, fearing they might miss out on further gains. Some crypto traders expressed their views on social media, predicting even higher prices if APE maintains its upward trend.
According to one trader, a monthly candlestick close above $1.99 could signal even greater gains. Another trader, CryptoBull_360, mentioned that APE is set for a breakout from its descending channel, possibly targeting a $2.75 price zone. This optimism is fueled by rising demand for ApeCoin on NFT markets, driving the latest price wave.
While the bullish sentiment is strong, certain indicators suggest that the price may face resistance. The Relative Strength Index (RSI) currently stands at 88, indicating overbought conditions and the possibility of a price correction.
However, data from IntoTheBlock shows that the buying support for APE is robust, with over 23.1 million APE tokens purchased by 9,320 addresses at prices between $1.45 and $1.49. This suggests solid support in this price range, which could help prevent a significant drop. As APE’s price approaches $1.65, derivative traders need to watch out. This level could trigger the liquidation of short positions, potentially leading to more price volatility.
