- ApeChain’s key features, such as Automatic Yield Mode and a cross-network bridge, have attracted significant interest by simplifying passive rewards for ApeCoin holders.
- Despite the surge, technical indicators suggest ApeCoin is currently overbought, and analysts warn of potential selling pressure.
ApeCoin (APE) price has surged by an impressive 118% the previous day with gains extending today. This massive surge is largely attributed to the launch of ApeChain, a Layer-3 blockchain developed on Arbitrum Orbit. The ApeChain launch has caught the attention of crypto enthusiasts and investors alike.
In the first three hours after the debut of ApeChain, the platform recorded $5 million in trading volume, as reported by Camelot DEX. ApeCoin’s total on-chain volume followed suit, skyrocketing by nearly 3000% and approaching the $1 billion mark.
Some Notable Features of ApeChain
One notable feature of ApeChain that has attracted a great deal of interest is the Automatic Yield Mode. This innovation allows ApeCoin holders to earn passive rewards without the need for active staking, a feature that simplifies the earning process for users. With the appeal of generating returns passively, ApeChain saw its user base grow from 83 to over 3,000 shortly after its launch. Over the past weekend, the Apecoin bridges went live bringing yield to APE and stablecoin, reported CNF.Â
The introduction of a cross-network bridge alongside ApeChain has also played a crucial role in ApeCoin’s recent rally. The new bridge facilitates the seamless transfer of APE, Wrapped Ethereum (WETH), USD Coin (USDC),
Tether (USDT), and Dai (DAI) across ApeChain, Ethereum, and Arbitrum networks. This enhancement has upscaled the utility of ApeCoin, especially within Yuga Labs’ ecosystem, known for its popular NFT collections, including Bored Ape Yacht Club.
As ApeChain’s native gas token, APE now serves multiple purposes. These include paying transaction fees, voting within the ApeCoin DAO, and acting as a payment method in Yuga Labs’ offerings. Additionally, a recent smart contract update introduced the LayerZero Omnichain Fungible Token (OFT) standard.
ApeCoin Price Dynamics
In addition to the ApeChain launch hype, ApeCoin has shown technical strength by breaking through a downward trendline that had constrained its price since June. The token’s current price stands at $1.55, up from $1.21 just the day before.
If the momentum continues, ApeCoin could potentially continue holding above the $1.47 mark and even approach $2. However, analysts are cautious, as they see long-term holders selling APE and the current performance of Bitcoin (BTC) as potential threats to the token’s future trajectory.
The recent rise in the ApeCoin price has not gone unnoticed. Several commentators have pointed to a potential FOMO (Fear of Missing Out) effect among investors. This behavior is not uncommon when tokens like ApeCoin surpass the $1 billion market cap. Also, many investors are now anticipating further price increases with potential selling pressure looming.
Despite the significant rally, technical indicators such as the Relative Strength Index (RSI) and Stochastic RSI suggest the token is currently overbought. According to data from CoinGlass, key liquidation levels for ApeCoin are at $1.0178, where a further price rise could trigger the liquidation of nearly $2.59 million in short positions.
These liquidations would propel the APE price upwards in the short term as short traders buy back their positions to minimize losses. However, this buying pressure won’t sustain as they would eventually sell these positions in the hope of bringing the prices down.
