Apechain Launch Ignites 100% Apecoin (APE) Price Rally

Key Takeaways

• ApeCoin announced the release of Apechain on Oct. 19.
• The ApeCoin (APE) price increased by over 100% afterward.
• How long will this ApeCoin price increase continue?

The APE price has fallen by 80% since its all-time high in 2022. In 2024 alone, ApeCoin fell 70%, reaching a new all-time low of $0.48 on Aug. 5.

However, one of the most positive pieces of Apecoin news hit on Oct. 19, announcing the release of Apechain. Shortly afterward, the APE price increased, doubling its value in two days.

Let’s analyze the APE price action and see whether the price can continue to increase and what will be next if it does.

Apechain Goes Live

The Apecoin team announced the release of Apechain during the ApeFest 2024 annual NFT event in Lisbon. Apechain is a specialized network that facilitates minting, trading, and decentralized applications (dApps).

Apechain aims to give Apecoin additional utility, making it more than a governance token. More specifically, APE will be used as a gas token for transactions, creating a demand for it and adding a burn mechanism.

APE will also be used for voting in the ApeCoin DAO and have a native yield mechanism. The Apecoin DAO voted that Apechain will be built on Arbitrum.

Apechain will allow developers to build directly integrated applications into the APE ecosystem. The launch also included a cross-chain bridge, enabling the movement of Ethereum (ETH) and APE through multiple chains.

Another interesting addition is the launch of Ape Express, a one-click token issuance platform, specifically aimed at memecoin creation and trading. In the past 24 hours, Ape Express had over 137,000 unique visitors,  more than 2,600 tokens created , and over 50 million in volume.

According to the team , Ape Express is a better version of Pump.fun , since every token makes it do a decentralized exchange (DEX) of choice.

Meme coins have been by far the best-performing sector in 2024. Since APE is used as a gas token for transactions, it is well-positioned to gain from this meme coin mania.

Finally, the top trader trading simulation game with daily tournaments and prizes can drive even more engagement to Apechain.

The APE price has pumped massively since the announcement, increasing 100% over the past two days.

APE Price Doubles

The daily time frame Apecoin chart shows that the price broke out from a descending resistance trend line in August. After the unsuccessful breakout attempts, APE finally moved above the resistance at $0.87. This created a massive bullish candlestick on Oct. 20 with a magnitude of 72%.

The increase took the APE price to a high of $1.73, briefly moving above the 0.5 Fibonacci retracement resistance level. However, it failed to sustain the increase and created a long upper wick (black circle).

Because of the upward movement, the daily Relative Strength Index (RSI) reached overbought territory. However, it has not generated any bearish divergence yet, which would signal an impending decline.

The wave count does not confirm if the upward movement is corrective, though it gives levels to watch to determine the direction of Apecoin’s next movement.

From February to August, APE completed a five-wave decline (white). The ensuing bounce could be an A-B-C corrective structure or a new five-wave increase.

While the fact that APE broke out from the channel suggests the move is a bullish trend reversal, the failure to move above the 0.5 Fibonacci retracement resistance level indicates it is corrective.

So, if Apecoin closes above $1.83, it will confirm the bullish trend reversal and increase above $2.

On the other hand, declining below the channel’s resistance trend line at $1.30 will mean the move is corrective and likely lead to new lows.

Future Trend Unclear

While the release of Apechain was an extremely bullish catalyst for the APE price, leading to a 100% increase.

However, it is still unclear if the long-term trend is bullish or bearish. Whether APE closes above $1.82 or falls below $1.30 can determine the future trend’s direction.