- ApeCoin price is on a recovery rally, recording almost 10% in gains over the last five days.
- 15.6 million APE tokens worth $16.68M will be unlocked on October 17, with some going to launch contributors or investors.
- The altcoin could experience some volatility, potentially derailing the recovery rally.
- A break and close above the $1.253 level would confirm the uptrend.
ApeCoin (APE) price has been bullish over the last week, recording high highs as part of a recovery rally. It comes after a steep downtrend beginning early October, and another steeper one that began in mid-August.
Also Read: ApeCoin holders oppose proposal to spend $12.1 million worth of APE for NFT series
ApeCoin price nurtures recovery rally
ApeCoin (APE) price is up 8% in the last week to the current price of $1.070. The price action over these past several days, characterized by higher highs culminates in a recovery rally that could see the altcoin vindicated from underneath the foothold of the $1.086 resistance level.
With the Relative Strength Index (RSI) northbound, momentum is rising, corroborated by the green histogram bars of the Awesome Oscillator (AO). A buy signal has also been executed, with the RSI crossing above the signal line. Nevertheless, the position of the RSI still under the 50 midline and the AO still in the negative zone shows that the odds still favor the bears.
With this outlook, chances that the recovery rally is premature remain high and ApeCoin price could face a rejection from the $1.086 resistance level. The ensuing selling pressure could send APE back to the support floor at $0.996, potentially breaking below this to tag the $0.993 range low.
APE/USDT 1-day chart
Meanwhile, the ApeCoin ecosystem has a cliff token unlock scheduled for October 17, two days out, which will see 15.60 million APE tokens worth $16.68 million flood the market in a cliff unlock. The tokens will be allocated to the Yuga Labs ecosystem and its founder, charity, treasury, and most interestingly, to the launch contributors. Launch contributors are basically the early investors, who participated in the token reaching its soft cap, the minimum amount raised before a token is launched. This cohort of community members is likely to sell for some quick profit.
The proceeding selling pressure adds to the downside potential that could see ApeCoin price correct from its ongoing recovery rally.
APE Token Unlocks
Conversely, increased seller momentum above current levels could see ApeCoin price breach the $1.086 resistance level, potentially extending to the supply zone extending from $1.220 to $1.289. A decisive move above the midline of this order block at $1.253 would confirm the uptrend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
GameStop, GME, shorts lose over $1 billion in mark-to-market losses on Monday amid meme-stock demand
GameStop short-sellers have lost $1 billion in the first hour of trading on Monday after 2,200% surge. Multiple exchanges reportedly had trouble processing orders following GameStop rally, GME paused due to volatility x3.
JUP price primed for a liftoff as Jupiter Exchange introduces LFG round 3 candidates
After a successful second round in May, the Jupiter Exchange has introduced candidates for its third launchpad (LFG). The Solana-based decentralized exchange (DEX) has been holding LFG votes to identify projects that will debut on its platform.
Top meme coins post gains following increased social activity amid GameStop pump
Meme coins in the crypto market saw impressive gains on Monday following a recent surge in GameStop stock. The increased attention surrounding these tokens signifies a potential resumption of the meme coin frenzy of March.
US Senators raise grave concerns over DOJ's policies towards cryptocurrency asset providers
Senators Ron Wyden and Cynthia Lummis wrote to the Attorney General to express worries over new policies on money transmission. The DOJ has continued to take strict measures against crypto asset software services over the last few months, says Senators.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.