APE surges 50% as investors react to ApeChain launch, major sell-off looming

ApeCoin has seen its price increase by 50% in the last 24 hours following the launch of its network bridge and other ecosystem developments.

ApeCoin (APE), the governance token of the APE ecosystem, rose from its six-month high of $1.21 to $1.53 over the past day, while its market capitalization surpassed the $1.1 billion mark.

ApeCoin's recent price rally can mainly be attributed to the launch of ApeChain, a new layer 3 blockchain. The cross-chain bridge enables seamless transfers of APE, Wrapped ethereum (WETH), USD Coin (USDC), Tether (USDT ) and Dai (DAI) between the ApeChain, ethereum (eth) and Arbitrum (ARB) networks.

Following its launch, APE's utility has expanded within the ecosystem of Yuga Labs, the company behind popular nft collections like Bored Ape Yacht Club. With the new bridge, APE tokens can now be used for yield farming, allowing holders to automatically generate returns on APE, eth, and stablecoins, increasing the utility of the token.

As ApeChain's native gas token, APE plays a central role in paying transaction fees, voting within the ApeCoin DAO, and serves as a payment method in Yuga Labs titles and real-world purchases.

Additionally, ApeCoin recently x.com/LayerZero_Core/status/1846950989800394980″ target=”_blank” rel=”nofollow”>inserted a smart contract upgrade, integrating the LayerZero Omnichain Fungible Token (OFT) standard, allowing APE to function as a governance token for the ApeCoin DAO and facilitating cross-chain transaction fees.

Several x commentators noted that APE's recent surge came as investors increasingly bought the token out of fear of missing out on significant gains. Typically, whenever a meme coin crosses the billion-dollar mark, investors expect a parabolic rise in its price driven by a growing belief in the token as it becomes less likely to be tampered with or tampered with.

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The Relative Strength Index and Stochastic RSI for APE were both above overbought levels at press time, which generally means a correction could be on the horizon. However, in the case of meme coins, sustained interest from traders can help drive prices higher, as previously seen with several of ApeCoin's contenders such as POPCAT and WIF.

Currently, key settlement levels for APE are $1,548 on the upside, with most day traders taking advantage around this level, according to data from CoinGlass. If the APE rises to $1.548, this could lead to the liquidation of around $2.59 million in short positions.