ApeCoin (APE) seems to increase its chances for surging up, as it closed above a critical support level. As of Thursday, there was a fundraising round held for APE. It was led by Andreessen Horowitz, who maintained the cryptocurrency’s comeback. As a result, millions of dollars were raised.
After a 7.5% rise in the price of APE over the day, it now trades at $14.50 each. Interestingly, the cryptocurrency’s rise in value came as part of a retracement rebound. It all began this week when it was trading at a low of $9.50 price. Correspondingly, there was a 50% increase in profit for the week ending March 21. Thus, APE has been ranked as one of the top-performing digital assets since that date.
The ApeCoin digital currency was created on March 17 through an “airdrop” supported by Yuga Labs. Yuga Labs is the founder of the Bored Ape Yacht Club (BAYC). Moreover, it is a collection of non-fungible tokens (NFTs) popular among celebrities, sportsmen, and venture capitalists for its so-called status symbol.
Diving Into More Detail About ApeCoin
Out of the 1 billion APE issued, Yuga Labs distributed 150 million APE to holders of Bored Ape NFTs. On Thursday, they received 10,904 tokens per piece, valued roughly at $158,000, for free. On the other hand, owners of the Mutant Apes earned 2,042 APE, worth about $30,000 at today’s price.
The company sees APE as a governance and utility token. In this manner, it will let its owners run the ApeCoin DAO. In addition, ApeCoin DAO is a decentralized autonomous organization. Hence, people who own an APE can vote on decisions made in the BAYC ecosystem. There is a statement by an excerpt from the ApeCoin official website. As noted, it will be a protocol layer for community-led projects that move culture into the Metaverse.
The ApeCcoin community has issued 5 proposals, including the DAO structure; the voting process; the allocation of the ecological budget; the rules for staking and the allocation of staking pool. More than half of the budget goes to the game development. https://t.co/s1vq8v623g
— Wu Blockchain (@WuBlockchain) March 24, 2022
Furthermore, Yuga Labs rewarded people who helped it get started. The reward contains some of its stock. The first investors who helped Yuga Labs were Andreessen Horowitz and Animoca Brands. The gifted stock is worth about $2 billion at today’s prices. On Tuesday, the company raised $450 million from the same investors. Its worth reached $4 billion.
Following the contributors’ list, FTX, the crypto exchange, is also participating in the funding round. Yuga said the money would grow its development team and manage its upcoming projects. For example, a possible metaverse project is called “Otherside.”
However, Yuga may also use the money to make Bored and Mutant Apes bigger brands. Some of them might be appearing on luxury goods and a play-to-win game that may use APE tokens. This is just one of the ways Yuga may use the money.
Looks like every single exchange is listing $APE.
I’m here for this.
— David Gokhshtein (@davidgokhshtein) March 23, 2022
The Future of APE
Since ApeCoin is only a week old, it does not have enough history to predict how the price will move in the future. On lower-timeframe charts, APE is still trending higher. As a result, traders buy when the price is at the lower trendline and sell when the price hits the upper trendline.
Therefore, APE’s current rebound move could help it keep going up until it reaches the channel’s upper trendline near $15. Unfortunately, this coincides with another resistance level from March 18-19.
In the meantime, APE is fighting to regain $14.25 in short-time assistance. However, it is not succeeding in doing so. This might result in an early retreat down the channel’s bottom trendline. This is also where its 20-hour exponential moving average (20-hour EMA, or the green wave) is at.