The cross-chain bridge was launched on Sunday, and as a result of this, ApeCoin increased by more than 70 percent.
This bridge lets users seamlessly swap APE tokens across the Ethereum and Arbitrum networks and generate a yield on their ApeCoin holdings.
Based on the APE technical analysis, the rally is likely to continue.
ApeCoin (APE) appears to be holding on to its gains on Monday after spiking by over 70 percent in the previous day after the announcement of the cross-modification bridge on ApeChain. This bridge allows users to swap APE tokens between the Ethereum and Arbitrum networks. Also, the technical outlook reasons further extension of this rally.
ApeCoin introduces an additional cross-chain bridge
ApeCoin on its official Twitter accounts, announces the launch of its new cross-chain bridge on ApeChain on Sunday. The announcement ignited the rally as APE served as the gas token for the new gambling platform which saw a 70 percent increase on that day. As a result, this occurrence has increased both the utility and need for APE.
According to the Volume graph from Santiment below, it appears that APE’s trading volume rapidly increased to more than double the amount in just a short time, appreciating by over 250%.
ApeCoin scales its smart contract initiating LayerZero responsive non-tokenized omnichain fungible token (OFT) that makes it possible for the token to migrate between ApeChain, Ethereum, and Arbitrum. Furthermore, Decent, together with ApeCoin, has enabled an inbuilt yield on the users’ ApeCoin balances such that no manual actions are required to earn a yield apart from ensuring omnichain interoperability is adhered to.
ApeCoin technical outlook
The weekly chart for ApeCoin shows that the $1.11 weekly resistance level is now clearly broken, after a near100% rise last week. That said, John Apter states that the price target retracement of this level owing to significant FIB levels is about 1.51, and the lower retracement level for this price is 0.473. Recently, ApeCoin made retracements@ 1.5. On Monday, APE's price reached these highs and is seeking to build momentum around that area.
Should APE close above the level of 1.51, the intermediate level of 2.29 would be the target for the uptrend. Support levels of the 2.68 area would also be useable should we manage a close above 2.29.
The weekly RSI momentum indictor till date stands at 63 which is above neutral level of 50 as well as slight from overbought territory recommending that bullish pressure is becoming quite visible.
The daily chart has also flipped bullish as it broke and closed above the daily pivot at $1.34 onSunday. Should APE continue its rise, it may encounter its next barrier at the resistance level of $1.84 which represetns 61.8 Percent Fibonacci retracement resistnace level.
The daily chart has the RSI at 87 over the overbought level. It is advisable for traders not extend their long positions as a pullback is likely.
Nevertheless, should APE not be able to hold the strategic daily support at $1.34, this would increase further the rally to end the session at a loss of 27% to reach closer to the 200 day EMA protective threshold of $0.976 that is about equal to the succeeding daily demand base of the $1.00 price zone.