APE surges 50% as investors react to ApeChain launch, major liquidation looms ahead

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

ApeCoin (APE), the governance token of the APE ecosystem, increased from $ 1.21 to $ 1.53 in the past day, while its market value exceeded $ 1.1 billion.

ApeCoin’s recent price rise can be primarily attributed to the launch of ApeChain, a new Layer-3 blockchain. The cross-chain bridge enables the seamless transfer 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 usage has expanded within the ecosystem of Yuga Labs, the company behind popular NFT collectibles such as Bored Ape Yacht Club. With the new bridge, APE tokens can now be used for yield farming, allowing holders to automatically generate returns from APE, ETH and stablecoins, thus increasing the utility of the token.

APE, ApeChain’s natural gas token, plays a central role in paying transaction fees, voting on the ApeCoin DAO, and serving as a payment method for Yuga Labs’ titles and real-world purchases.

Additionally, ApeCoin recently launched a smart contract update that integrates the LayerZero Omnichain Fungible Token (OFT) standard, allowing APE to function as a governance token for the ApeCoin DAO, facilitating transaction fees across multiple chains.

Many commentators on Typically when a meme coin crosses the $1 billion mark, investors expect a parabolic increase in its price as belief in the token increases as it becomes less likely to be manipulated or cheated.

$APE
A lot of people must be watching this pump like a monster on fomo

The reason for the pump is its launch #MonkeyChain

If you think you missed it

the real game begins when we see the monthly candle continuing above $1.99 pic.twitter.com/Igr9h1hbMl

— LA𝕏MAN (@Theblockvlog) 21 October 2024

APE price, RSI and Stoch RSI chart — October 21 | Source: crypto.news

The Relative Strength Index and Stochastic RSI for APE were above overbought levels at press time; This generally means a correction may be on the horizon. However, when it comes to meme coins, continued interest from traders could help push prices even higher, as has previously been seen with many of ApeCoin’s competitors such as POPCAT and WIF.

Source: CoinGlass

According to data from CoinGlass, key liquidation levels for APE currently sit at $1,548 on the upside, with most intraday traders using leverage around this level. A rise in APE to $1.548 could lead to liquidations of approximately $2.59 million in short positions.