APE price rises after ApeCoin DAO announces multi-year partnership with Formula 1 team
- APE has signed a partnership with an undisclosed Formula 1 team after passing the Improvement Proposal AIP 406.
- The Formula 1 partnership is expected to engage the ApeCoin community, boosting APE’s utility.
- APE price is up nearly 5% since the official announcement.
The APE Foundation said on Friday that an improvement proposal based on a partnership with a Formula One racing team has been passed. The undertakings are currently confidential, but ApeCoin DAO said that the F1 team has a strong history of competition and it finished in the Top 6 of the 2023 Constructor Standings.
Also read: APE price rallies nearly 8% as ApeCoin sees surge in activity
ApeCoin DAO multi-year partnership supports APE price gains
ApeCoin is an exclusive Community Coin Partner and non-exclusive Team Partner to an F1 team, according to its announcement on X. While the DAO is yet to reveal the name of the team, the partnership intends to increase brand visibility, recognition and reach for ApeCoin.
ApeCoin DAO has passed a thrilling partnership with [Redacted] Formula 1 team! Get ready for an adrenaline-fueled ride as we rev up for this multi-year partnership.
— ApeCoin (@apecoin) March 22, 2024
Additional details will follow as the agreement is finalized. Stay tuned for all the exhilarating updates!… pic.twitter.com/TCgmcXfrXD
The DAO has not mentioned a date when it will disclose the name of the F1 team involved in the partnership.
The proposal requested €5.125 million for the first two years from the ApeCoin Ecosystem Fund. The DAO retains the option to renew the partnership at the end of these two years, with a 5% increase in the payment schedule.
The APE Foundation’s undertakings and the partnership are expected to boost the utility for ApeCoin and add value to the ecosystem.
APE price reacts positively to the news
APE price yielded nearly 17% weekly losses for holders. APE price climbed nearly 5% since the official announcement in a tweet on X. The NFT token could recover from the decline and climb towards the Fair Value Gap (FVG) between $2.364 and $2.392.
In its rally towards the FVG, APE price could face resistance at $2.191, which is the 50% Fibonacci retracement of the decline from the year-to-date peak of $2.683 on March 13 to the March 20 low of $1.7.
The Moving Average Convergence/Divergence (MACD) indicator shows green bars above the zero line, signaling that APE has positive momentum. The Relative Strength Index (RSI) is at 47.85, inching towards the neutral level at 50.
APE/USDT 4-hour chart
In the downside scenario, a candlestick close below $1.70 could invalidate the bullish thesis. In this case, APE price could find first support at the February 28 low of $1.655.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
