APE price climbs above key support levels | Credit: Derek Fenech
Share
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.
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.
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.
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.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
