ApeCoin (APE), the governance token of the APE ecosystem, has seen its price surge by +100% since the early hours of October 20, 2024. The price spike is largely attributed to the launch of ApeChain, an official Layer-3 blockchain managed by the ApeCoin DAO.
ApeChain Launch and Its Impact on APE’s Price
The significant rise in APE’s price is believed to be driven by the launch of ApeChain, a new Layer-3 blockchain developed by ApeCoin DAO as part of the Arbitrum Orbit Chain. With this launch, ApeCoin’s trading volume has skyrocketed. The trading volume on Camelot, an Arbitrum-based DEX that supports ApeChain, exceeded $5 million within the first three hours of the launch. Additionally, on-chain APE volume saw a drastic 30-fold increase over the last 24 hours, nearing $1 billion.
Users can now transfer their tokens to ApeChain via the official bridge to start earning rewards from APE, ETH, and other stablecoins.
The launch of ApeChain has fueled growing interest from traders, with market observers comparing it to Solana-based projects like Pump.fun, which is also gaining traction.
APE Price Predictions and Future Trends
Currently, APE is showing strong bullish momentum, with trading volumes continuing to rise. Open interest in the market has also spiked, with trading volume hitting $2 billion, placing APE among the top nine tokens by trading volume, especially in perpetual futures markets.
From a technical perspective, APE’s first support level is at $1.31, corresponding to the 0.382 Fibonacci retracement, while the final support is at $1.00, aligned with the 0.236 Fibonacci level. As of the time of writing (October 21, 2024), APE is holding steady at $1.5 or the 0.5 Fibonacci level. If the upward momentum continues, APE could potentially reach $1.83 or the 0.618 Fibonacci level.
ApeChain has the potential to become a new hub for memecoins, similar to what has been seen on Solana, Base, and Sui. This is supported by extremely low transaction fees—less than $0.01—and the use of APE tokens as gas, which could increase demand for the asset if ApeChain achieves success.
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