2 months ago
Apecoin (APE) is experiencing a rollercoaster thrust successful 2024. After plummeting to an all-time debased of $1.01 successful October 2023, the Bored Ape Yacht Club governance token has experienced a melodramatic turnaround, buoyed by strategical whale buying and a caller concern with the Arbitrum network.
However, with a 13% pullback successful the past 2 days and lingering profit-taking concerns, questions stay astir whether the bulls tin support cardinal enactment levels and propulsion the terms backmost towards its erstwhile glory.
At the clip of writing, APE was flashing green, trading astatine $1.73, which is simply a 0.6% and 7.5% summation successful the 24-hour and play timeframes, information from Coingecko shows.
APE terms action. Source: Coingecko
Riding The Arbitrum Wave
The turning constituent came connected February 16th, erstwhile the Apecoin DAO voted to motorboat ApeChain, a dedicated blockchain, connected the Arbitrum network. This partnership, aimed astatine tackling scalability issues and fostering ecosystem growth, sparked a 21% surge successful APE price, pushing it to a six-month precocious of $1.90.
APE seven-day terms action. Source: Coingecko
Whales Hold Firm, Retail Cashes Out
On-chain information paints a fascinating representation of contrasting capitalist behavior. While retail investors and plaything traders were speedy to fastener successful profits aft the rally, “whales” – those holding astatine slightest 10 cardinal APE tokens – person displayed unwavering confidence.
Since January 1st, these ample investors person acquired an further 22 cardinal APE tokens, representing a staggering $40 cardinal concern and bringing their full holdings to 61 cardinal APE. This unwavering condemnation suggests semipermanent optimism successful the project’s potential.
Can The Bulls Hold The Line?
Despite the bullish whale activity, a caller pullback has formed a shadiness connected the optimistic outlook. The terms dipped 13% successful the past 2 days, investigating the important $1.50 enactment level. A breach of this enactment could trigger further diminution towards $1. However, a ample buying clump astatine $1.50, representing 9,630 investors who purchased APE astatine that price, could enactment arsenic a important obstruction to a deeper fall.
Eyes On $2, But Hurdles Remain
Technical investigation and marketplace sentiment suggest a imaginable aboriginal rebound towards $2 successful the coming weeks. However, this hinges connected 2 cardinal factors: defending the $1.50 enactment and overcoming further profit-taking waves. Additionally, broader affirmative developments successful the NFT assemblage could supply tailwinds for APE price.
Looking Beyond The Immediate
Congratulations to @apecoin DAO connected its determination to make ApeChain utilizing the Arbitrum tech stack!
With $APE serving arsenic some the state and governance token for ApeChain, Arbitrum Orbit’s customizability empowers @ApeCoin DAO with existent ownership and power implicit this…
— Offchain Labs (@OffchainLabs) February 15, 2024
While the Arbitrum concern and whale enactment are encouraging, respective hurdles remain. The broader macroeconomic climate, inactive grappling with ostentation and involvement complaint concerns, could interaction capitalist sentiment crossed the cryptocurrency market. Moreover, the occurrence of ApeChain itself remains to beryllium seen, and immoderate unforeseen challenges could dampen enthusiasm.
With a imaginable $2 people tantalizingly close, Apecoin faces a captious juncture. Whether the bulls tin flooded the contiguous hurdles and propel the token to caller heights, oregon if profit-taking and broader marketplace headwinds prevail, remains to beryllium seen.
Featured representation from Pexels, illustration from TradingView
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