ApeCoin (APE) is up around 11% in the past 24 hours, outperforming a near-flat broader crypto market. Different altcoin sectors are gradually returning to last week’s positive gains after retracing the last three days.
However, the crypto market remains calm, which serves as an alarming signal for the APE rally to continue.
ApeCoin bounces off the 80% Fib level
Over the last two weeks of April, ApeCoin increased by over 184%, reaching a value of $0.2786. What followed was a massive correction that lasted more than a month. This correction brought back about 80% of the aforementioned rally.
The MACD bars show that the strength of the bulls is increasing, although it has slowed down in the current session. The Choppiness Index (CHOP) at 40 supports a potential upward trend.
The upper resistance of the descending channel ranges from $0.1903 to $0.1300. To remain bullish, APE bulls need to keep the altcoin above $0.13, and it is currently approaching it for a retest.
Failure to do so may render the allocation invalid. This would see APE return to the channel. On the other hand, it could return to April highs of $0.2786 or higher.
Increased volume and transactions
One of the main drivers of this recovery has been the rise in hot money. GameFi tokens like Virtuals Protocol (VIRTUAL) have seen double-digit gains over the past two days, with APE among them.
In fact, daily trading volume jumped around 145%, reaching $51 million. Additionally, liquidity was present, as evidenced by a turnover rate of 36.94%.
Additionally, the number of daily transfer amounts has increased over the past five days. This means an increase of 6.027 million APE to 23.468 million tokens, with a total number of transfers of 8,074 during this period.
These factors show the strength of not only Apecoin but also the broader GameFi sector.
Impact of mixed trader activity
However, according to Nansen AI, there is mixed trading activity from retailers and whales.
Thousands of APE tokens are sold while others are purchased. For example, two users transferred 7,612 APE and 11,889 APE to Binance from Kraken.
Some APE tokens are being moved to liquidity pools and staking, which is bullish for the coin.
Overall, trader activity was mixed but tilted to the bullish side. Therefore, observing the altcoin price reaction around $0.13 would determine the next step up or down.
Final summary
- ApeCoin jumped 11% in the last 24 hours, thanks to the recovery of the GameFi sector over the last two days, as well as an increase in trading volume and an increase in transactions.
- The APE breakout would only hold if the altcoin remains above $0.13; otherwise, it becomes invalid.
