ApeCoin [$APE] is up by about 11% in the past 24 hours, outperforming a nearly flat broader crypto market. Different altcoin sectors are gradually returning to last weeks positive gains after retracing for the last three days.
However, the crypto market remains quiet, an alarming signal to the continuation of $APEs rally.
ApeCoin bounces off 80% Fib level
In the last two weeks of April, ApeCoin rallied by more than 184%, reaching a value of $0.2786. Consequently, a massive correction that lasted for more than a month followed. This correction pulled back about 80% of the aforementioned rally.
The MACD bars show that bulls strength is increasing, though in the current session it has slowed down. The Choppiness Index (CHOP) at 40 is supporting a potential uptrend.
The upper resistance of the descending channel runs from $0.1903 to $0.1300. To stay bullish, $APE bulls need to keep the altcoin above $0.13, and its currently approaching it for a retest.
Source: $APE/USDT on TradingView
Failure to do so may render the breakout invalid. That would see $APE drop back to the channel. On the flip side, it may trade back to April highs of $0.2786 or higher.
Volume and transactions surge
Among the key drivers of this rally was the spike in speculative capital. GameFi tokens like Virtuals Protocol [VIRTUAL] recorded double-digit gains in the past two days, with $APE among them.
In fact, the daily trading volume jumped by about 145%, reaching $51 million. Moreover, liquidity was present, evident from a turnover ratio of 36.94%.
Moreover, the number of daily transfer amounts has been rising over the past five days. This means an increase from 6.027 million $APE to 23.468 million tokens, with a total transfer count of 8,074 during this period.
Source: Etherscan
These factors show strength not only in Apecoin but also in the broader GameFi sector.
Impact of mixed trader activity
However, there is mixed trader activity from both retailers and whales, according to Nansen AI.
Thousands of $APE tokens are being sold while others are being bought. For instance, two users moved 7,612 $APE and 11,889 $APE to Binance from Kraken.
Some $APE tokens are being transferred to liquidity pools and staking, which is bullish for the coin.
Source: Ethereum Browser
Altogether, trader activity was mixed but leaning on the bullish side. Hence, watching how the altcoins price reacts around $0.13 would determine the next leg up or down.
Final Summary
- ApeCoin surged 11% in the past 24 hours, driven by a revival in the GameFi sector over the last two days, along with a spike in trading volume and increased transactions.
- $APEs breakout would only hold if the altcoin stayed above $0.13; otherwise, it becomes invalid.