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ApeCoin (APE) Rally Poised to Continue According to These 3 Indicators

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Victor Olanrewaju
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Key Takeaways

  • On-chain data shows that rising network activity could boost ApeCoin price increases.
  • The IOMAP reveals that APE has enough volume at certain price levels to validate the hike.
  • The token is on the verge of breaking above a bearish pattern, which could send it close to $2.

On Jan. 13, ApeCoin (APE) price dropped below $1, hinting at an extended correction. But today, the cryptocurrency’s value has climbed to $1.17 after a 6% hike in the last 24 hours.

The last time a similar price movement occurred, it was a false breakout.

This time, it might not be the case, as indicators across several platforms reveal that APE’s price will likely keep rising.

ApeCoin Flashes Bullish Signal

To begin with, CCN analyzed the price-Daily Active Addresses (DAA) divergence, a metric used to assess user participation in a cryptocurrency.

When the price DAA divergence is positive, it indicates strong user engagement with the token, which can support a price increase. On the other hand, a negative divergence suggests low user activity, potentially dragging the price down.

According to Santiment, ApeCoin’s price DAA divergence currently stands at a positive 26.17%. This suggests a high level of successful transactions involving ApeCoin. If this trend persists, APE’s value could rally toward $2 in the short term.

ApeCoin network price analysis
ApeCoin Price DAA Divergence | Credit: Santiment 

Beyond this, the In/Out of Money Around Price (IOMAP) also aligns with the bullish bias.

The IOMAP classifies addresses based on those making money at the current value, at the breakeven point, and those holding at unrealized losses.

The indicator can spot support and resistance at different price levels with this data. Typically, the higher the volume of tokens at a price range, the stronger the resistance.

According to IntoTheBlock, a strong support exists between $1.08 and $1.14. Nearly 10,000 ApeCoin addresses hold a combined 50 million tokens in unrealized profits at this price range.

APE price finds support
ApeCoin In/Out of Money Around Price | Credit: IntoTheBlock 

This volume exceeds the number of tokens in unrealized losses accumulated between $1.19 and $1.38. Considering this position, ApeCoin’s price could breach the resistance at these levels and cause higher trade.

APE Price Prediction: Closer to $2?

Meanwhile, the technical outlook of the cryptocurrency falls along the same line as the indicators above.

According to the daily APE/USD chart, the cryptocurrency is trading within a descending triangle, which is typically a bearish pattern.

However, the price at $1.18, is above the 0.236 Fibonacci level, meaning APE has breached a key resistance. Besides that, the Relative Strength Index (RSI) is closing in on the zero signal line.

This indicates that the momentum around APE is switching from bearish to bullish. The rally might continue if the RSI reading breaks above the signal line.

ApeCoin price analysis
APE/USD Daily Chart | Credit: TradingView 

In that scenario, ApeCoin’s price could climb to the 0.786 Fib level at $1.90. On the other hand, if the token drops below the 0.23 Fib line, correction could follow. If that is the case, APE might decline to $0.87.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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