ApeCoin [APE] finally broke out of an extended period of tight consolidation, trading between $0.13 and $0.14.
At press time, APE traded at $0.168 after rising by 15% on the daily charts. Over the same period, the memecoin’s trading volume surged 218%, indicating strong market participation.
What’s driving ApeCoin
APE buyers increased capital deployment and defended the higher price levels. Thus, the memecoin rebounded, driven by strong market demand.
For starters, on the spot side, the memecoin recorded 27.3 million in Buy Volume over the past 24 hours. At the same time, the memecoin’s Sell Volume declined to 25 million.
As a result, the market Buy-Sell Delta skyrocketed to 2.3 million, a significant surge from -234k before the market pump. Such a jump in market delta signaled that buyers had retaken the market and displaced sellers.
On the derivatives side, speculative traders also returned to the market. In doing so, they pushed the memecoin’s Open Interest (OI) to climb 40% to $38 million.
At the same time, the Derivatives Volume climbed by 236% to $144.7 million. Rising OI and volume together suggested that traders aggressively opened new positions, either longs or shorts.
Historically, strong demand across both the spot and derivatives markets has preceded stronger upward price movement. Thus, if sustained, it could clear a path for continued gains.
Can the upside momentum hold?
In the short term, APE has shown relative strength, with bulls retaking the market. In doing so, the memecoin’s Stochastic Momentum Index (SMI) formed a bullish crossover and rose to 54 as of writing.
The SMI’s upward trajectory validated the trend’s strength, confirming traders are in total control of the market. At this level, the indicator indicates that if demand holds, APE could make further gains.
If the current trend continues, APE could target a breakout above the $0.18 resistance in the short to medium term.
Impact of ApeCoin’s Q3 accelerator
Beyond market performance, ApeCoin seeks to expand its reach with the upcoming accelerator launch in Q3. The accelerator, led by ApeCo, is designed to incubate Web3, metaverse, and gaming projects, with the goal of expanding market reach and driving broader adoption.
This could be a major boost for APE, since the token’s utility will require APE for project submissions and investments. Thus, once launched, the initiative will greatly expand APE usage, which will, in turn, translate into price action.
Therefore, for Q3, the accelerator could boost ApeCoin’s market direction and help the memecoin reclaim $0.25, with $0.3 as the most bullish case.
Final Summary
- Apecoin broke out of a tight range, surging 15% to a monthly high of $0.168 before retracing at press time.
- APE rebounded, driven by recovered demand across the spot and derivatives market
