Investor Response to ApeChain Launch Drives APEs 50 Surge Imminent Major Liquidation on the Horizon
ApeCoin experienced a remarkable 50% surge in its price within the last 24 hours following the introduction of its cross-network bridge and other ecosystem advancements.
The governance token of the APE ecosystem, ApeCoin (APE), soared from $1.21 to $1.53, reaching its highest point in the past six months. Additionally, its market capitalization surpassed $1.1 billion.
The recent surge in ApeCoin’s price can be primarily attributed to the launch of ApeChain, a new Layer-3 blockchain. This cross-chain bridge allows for seamless transfers of APE, Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) between ApeChain, Ethereum (ETH), and Arbitrum (ARB) networks.
With the introduction of the bridge, APE’s utility has expanded within the Yuga Labs ecosystem, the company responsible for popular NFT collections like the Bored Ape Yacht Club. Holders of APE tokens can now engage in yield farming, generating automatic returns on APE, ETH, and stablecoins, thereby enhancing the token’s usefulness.
As the native gas token of ApeChain, APE plays a central role in paying transaction fees, voting within the ApeCoin DAO, and functioning as a payment method in Yuga Labs’ titles and real-world purchases.
In addition, ApeCoin recently implemented a smart contract update that incorporates the LayerZero Omnichain Fungible Token (OFT) standard. This allows APE to serve as a governance token for ApeCoin DAO and facilitates transaction fees across multiple chains.
Many commentators have noted that the surge in APE’s price is a result of investors rushing to buy the token due to the fear of missing out on significant gains. Typically, when a meme coin surpasses the $1 billion mark, investors anticipate a parabolic rise in its price, driven by increasing confidence in the token’s resistance to manipulation or rug pulling.
At present, the Relative Strength Index and Stochastic RSI for APE indicate that the token is overbought, suggesting that a correction may be imminent. However, sustained interest from traders can help propel meme coin prices higher, as previously observed with ApeCoin’s competitors like POPCAT and WIF.
According to data from CoinGlass, the key liquidation levels for APE currently stand at $1.548 on the upside, with many intraday traders leveraging around this level. If APE reaches $1.548, it could result in the liquidation of approximately $2.59 million in short positions.
