ApeCoin (APE) price surges 100% with ApeChain launch.

The price of ApeCoin (APE) rose on October 21, rising 130% over the past four days amid anticipation for the launch of the highly anticipated blockchain network ApeChain.

APE rose from a low of $0.861 on October 20 to a six-month high of $1.75 on October 21, up 104%, according to data from Cointelegraph Markets Pro and TradingView. At the time 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.

Several factors supporting ApeCoin’s strength include developments surrounding the recent launch of ApeChain and strengthening market structure.

APE price rises with Layer 3 ApeChain launch

ApeCoin’s price increase on October 21 follows the launch of the long-awaited blockchain network ApeChain by the ApeCoin team led by Yuga Labs.

Launched on Sunday, October 20, the layer 3 blockchain is a cross-chain bridge that 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 may expand the utility of APE within the Yuga Labs ecosystem, increasing demand for ApeCoin tokens. As a result, APE’s trading volume increased significantly, surging more than 250%, according to data from Santiment.

Another factor driving the rise of APE is the recent integration of LayerZero’s Omnichain Fungible Token (OFT) standard into the ApeChain mainnet.

With the introduction of LayerZero, an interoperability protocol that allows applications to move data across blockchains, APE can function as the governance token of the ApeCoin DAO and be used as a transaction fee across multiple chains.

Can ApeCoin price maintain momentum?

ApeCoin’s recent surge has sparked interest among investors, who are increasingly buying the token amid “fear of missing out” on potential profits.

“Too many people will be watching this pump like a beast in FOMO,” pseudonymous cryptocurrency trader Laxman said of APE’s latest price action in an October 21 post.

The trader said he could make a “real” profit if APE’s price generates a decisive monthly candlestick close above $1.99.

“APE appears to be preparing for a massive breakout on the weekly chart as the bearish channel is ready to reverse!” declared fellow trader CryptoBull_360 in X’s October 21 post.

“Demand for #Apecoin continues to grow in the #NFT market, sparking waves as we anticipate a 260% pullback to the $2.75 price area.”

The Relative Strength Index is currently assessed at 88, which means it is overbought (when above 70) and a correction is likely.

Nonetheless, the data shows that APE has relatively strong bearish support compared to the resistance it faces on the recovery path.

For example, IntoTheBlock’s in/out of the Money around Price (IOMAP) model shows that more than 23.1 million APEs were previously purchased from approximately 9,320 addresses priced between $1.45 and $1.49.

Increased buying by this group of investors is likely to push APE prices higher.

The IOMAP chart above shows that the path of least resistance for APE is upward.

Nonetheless, the liquidation level for APE has upside potential of $1.65, with most derivatives traders using leverage around this level. If ApeCoin rises to $1.65, approximately $8.63 million in short positions could be liquidated.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.