APE price rises after ApeCoin DAO announces multi-year partnership with Formula 1 team

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. 

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.