ApeCoin (APE) price jumps 100% on ApeChain launch

ApeCoin's price skyrockets 100% due to the highly anticipated ApeChain launch, increasing its demand within the NFT and blockchain ecosystem.

ApeCoin (APE) has experienced a remarkable price surge, jumping by over 100% in just a few days. This sudden rise in value is attributed to the recent launch of ApeChain, a new blockchain network developed by the ApeCoin team.

The combination of ApeChain’s introduction and other market factors has led to an unprecedented spike in APE’s price and trading volume, with traders and investors showing heightened interest.

ApeCoin’s Rise Following ApeChain Launch

On October 21, ApeCoin's price surged dramatically, peaking at 130% above its previous value over a short period. This growth followed the official launch of ApeChain, a layer-3 blockchain network designed to enhance interoperability within the ApeCoin ecosystem. ApeChain enables seamless token transfers between major blockchains like Ethereum and Arbitrum, which are pivotal in enhancing ApeCoin's functionality across decentralized finance (DeFi) platforms and non-fungible token (NFT) marketplaces.

APE/USD daily chart. Source: TradingView


According to data, ApeCoin rose from a low of $0.861 on October 20 to a high of $1.75 by October 21. At the time of writing, APE was trading at $1.53, reflecting a 125% increase over the previous week. The sudden surge in value was also accompanied by a significant increase in trading volume, further signaling growing demand for ApeCoin.

APE trading volume. Source: Santiment

LayerZero Integration: Driving ApeCoin's Utility

A key driver of ApeCoin's recent success is the integration of LayerZero's Omnichain Fungible Token (OFT) standard into ApeChain. LayerZero is a cross-chain interoperability protocol that allows data transfer between blockchains, facilitating greater flexibility in how ApeCoin can be utilized. This integration allows ApeCoin to be used not only as a governance token within the ApeCoin DAO but also for transaction fees across multiple networks.

In addition to cross-chain compatibility, ApeChain’s ability to connect APE with other major tokens such as Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) adds further utility. This advancement has positioned ApeCoin to play a larger role in decentralized applications (dApps) and NFT platforms, significantly increasing its demand.

Market Sentiment and Price Momentum

The excitement surrounding ApeCoin's price surge has sparked a “fear of missing out” (FOMO) among many traders. Pseudonymous trader Laxman commented, “So many people must be in FOMO watching this pump like a beast,” referring to the quick escalation of APE’s price. With traders now eyeing further gains, many believe the real test for ApeCoin lies in maintaining momentum above critical resistance levels.

Some traders have set a price target of $1.99 as a potential breakout point, which would signal even greater gains if surpassed. Another trader, CryptoBull_360, speculated that ApeCoin could witness a 260% rally, driving its price to $2.75, especially with increasing demand from NFT markets.

APE exchange liquidation heatmap. Source: CoinGlass

Price Stability and Potential Risks

Despite its recent performance, ApeCoin faces challenges in maintaining its upward trajectory. The Relative Strength Index (RSI) for APE is currently at 88, which indicates that the token is overbought. In such conditions, corrections are often expected as the market recalibrates to avoid excessive price inflation.

However, despite the likelihood of short-term corrections, ApeCoin has shown strong downside support, particularly from investors who bought in at price levels between $1.45 and $1.49.

Market data also suggests that ApeCoin may face liquidations around the $1.65 price mark, with approximately $8.63 million worth of short positions at risk if APE reaches this level. While liquidations could introduce volatility, the overall sentiment surrounding ApeCoin remains bullish.

Conclusion

The launch of ApeChain and the integration of LayerZero's interoperability technology have fueled ApeCoin’s recent price surge, pushing its value up by over 100% in just a few days. With the potential for further gains, especially in the NFT sector, ApeCoin is well-positioned to capitalize on its expanded utility across multiple blockchain ecosystems. However, traders should remain cautious of potential price corrections, as indicators suggest the token may be overbought.

As ApeCoin continues to gain traction, it will be critical to monitor both market sentiment and technical indicators to assess whether this rally can be sustained in the long term.