Introduction
October in the crypto market is often seen as a "green month," with many coins historically showing upward trends, the 2024 year is not an exception. ApeCoin joined the rally, experiencing a notable surge, reaching $1.60, which is surprising for me actually because of the weakness of this token in recent months. Is it a sign that the price can hang above the $1.60 zone and we will see the $2.5 token price once again in the near future?
Main Factors of the Recent ApeCoin Price Surge
Green Month
ApeCoin recently surged due to several factors. In October, ApeCoin experienced a positive shift in momentum, breaking past its previous resistance level of $1.6. The coin's gained 120% over the last 30 days; that was large bullish market sentiment and technical indicators, showing us it has further upward potential.
Personally, I feel that this surge might not just be a seasonal trend but a real starting point for ApeCoin. As someone who has seen the ups and downs of various tokens, it’s encouraging to witness a comeback like this, especially after months of volatility.
Analysts also point out that ApeCoin's role in the Web3 ecosystem, especially its utility within NFT projects like Bored Ape Yacht Club, continues to boost its value. According to Greg Solano, a founder of Yuga Labs, "While the testnet may have limited initial uses, it is a foundational step towards future decentralized applications that will utilize ApeCoin.".
I really think that the mention of the testnet might not sound gamechanging for now, but it's these small steps that often pave the way for much bigger things in crypto. For all ApeCoin holders, this is a signal that their investment is tied to long-term growth as decentralized applications expand. It feels like ApeCoin is being set up to have a much more significant role in the future of decentralized finance and NFTs than we might realize now.
ApeChain
The upcoming launch of ApeChain is also closely tied to ApeCoin recent spike in price, a new Layer 2 chain that will run on Arbitrum. This new blockchain is designed to enhance the ApeCoin ecosystem, with APE serving as both the governance and gas token for the network. The excitement surrounding ApeChain has contributed to the rise in ApeCoin’s price, as many anticipate increased usage of APE in the broader ecosystem, including content distribution and tool development.
I see the launch of ApeChain as a game-changer. It's not just about boosting the price, it's about creating real utility and opportunities for developers and users.
Speaking of ApeChain, co-founder of Yugalabs, Gordon Goner announced in November ApeChain in Vegas (11.21–11.24), saying it's not going to be an ape fest but something special.
According to data from Chain Catcher, "The trading volume on ApeChain reached 25 million dollars within 12 hours of its launch," which basically means the biggest spike in price in a short period of time during the whole lifetime of ApeCoin in the cryptomarket.
According to BlockBeats, "ApeChain Records Over 360,000 Transactions Within 12 Hours of Launch.". As you can see, people are interested in ApeChain, so they are willing to invest as never before, see chart below.
ApeCoin’s Surge to $1.60: Updated Technical Analysis Overview
Slight Retracement from $1.60: ApeCoin surged to $1.60, as seen earlier, but we now observe a retracement to around $1.53. Despite this slight pullback, the upward momentum remains intact as long as key support levels hold.
Updated Support and Resistance Levels:
- Support Levels: We see new support forming around $1.41, with the $1.38 level acting as a more significant base. That means that even with short-term corrections, ApeCoin is supported by these lower bounds.
- Resistance Levels: The $1.60 level is still important. If ApeCoin can rise back to this price, we might see it keep going up from there.
Volume Analysis: The volume still shows strength, as you can see on the chart, there is a slight decrease compared to earlier surges. This is a signal that some buyers are waiting for a stronger confirmation before entering the market. If volume will go up again, we could see another rally to $2.50.
RSI Cooling Down: The RSI has cooled slightly to around 75, indicating that while ApeCoin remains overbought, the pressure is decreasing. A more stable RSI could allow for a continued rise if buyers return after the pullback.
Bullish and Bearish Scenarios for ApeCoin’s Price Movement
Bullish Scenario:
$1.60 Resistance: Right now, $1.60 is a key point for ApeCoin. If it will go further, we might see it rise to between $1.70 and $1.80. This could happen as more people feel confident about buying, leading to even higher prices.
Support at $1.41 Holding: Recently, ApeCoin dipped a bit but fortunately has found some support at $1.41. This means that $1.41 is acting like a safety line. If the price will be above this line, there's a good chance we’ll see ApeCoin make another attempt to reach $1.60.
Price Consolidation: If ApeCoin can maintain its position above $1.41 and gather some positive energy, especially with the upcoming launch of ApeChain, it could set the stage for another climb. The hype around ApeChain might just give ApeCoin the significant boost it needs to keep moving up.
Bearish Scenario:
Further RSI Decline: Although the RSI is slightly goind down, it still remains above 70, meaning that ApeCoin is still technically overbought. A further decline in RSI could result in a pullback to test deeper support levels, with $1.38 or even $0.72 becoming possible if momentum weakens.
Break Below $1.41 Support: If the price fails to hold the $1.41 support level, ApeCoin could experience a deeper correction. The next key support would be $1.38, but if selling pressure will intensify, a retest of the $1.00 region is not out of the question.
Decreasing Volume: If trading volume continues to decline, it could signal that buyers are losing interest, leading to further retracement. Without renewed volume, the chances of touching the $1.60 resistance will equal zero, possibly leading to a downward trend.
Conclusion
ApeCoin has been on a pretty good run in October 2024, and it seems like a few things are driving it up. People are feeling positive about the market, and there's a lot of hype around ApeChain launching soon. Recently, it’s been testing some support and resistance levels that look promising, so it might break past $1.60 and maybe even reach $2.50 again. But if trading volume drops and support doesn't hold, we could see a pullback. Since ApeCoin still has community support due to valuable NFT collections and events, it’s definitely worth keeping an eye on its next moves.
