APE has closed above a major interim support level, increasing its chances of continuing its upward trend.
The startup behind ApeCoin (APE) raised hundreds of millions of dollars in a funding round led by Andreessen Horowitz on Thursday, continuing its upward trend.
The price of APE increased by 7.5 percent intraday to roughly $14.50 per piece. The token’s upward movement was part of a retracement rebound that began at the start of this week, when it was trading for as little as $9.50.
APE’s profits have increased by 50% week-to-week, making it one of the best-performing digital assets since March 21.
significant VC boost
To recap, the ApeCoin digital currency was created on March 17 through a “airdrop” supported by Yuga Labs, the founder of the Bored Ape Yacht Club (BAYC), a collection of nonfungible tokens (NFT) popular among celebrities, athletes, and venture capitalists for its “status symbol.”
Yuga Labs distributed 150 million APE to the owners of the Bored Ape NFTs, out of a total of 1 billion generated, with everyone receiving 10,904 tokens worth roughly $158,000 as of Thursday.
Owners of the most valuable BAYC NFTs, the “Mutant Apes,” received 2,042 APE, which is worth roughly $30,000 today.
The company envisions APE as a governance and utility token that would enable APE holders to control and oversee the ApeCoin DAO, a decentralised autonomous organisation. As a result, people who own an APE have the ability to vote on decisions made inside the BAYC ecosystem.
According to an excerpt from the ApeCoin’s official website, “it will serve as a decentralised protocol layer for community-led initiatives that move culture forward into the metaverse.”
The ApeCcoin community has issued 5 proposals, including the DAO structure; the voting process; the allocation of the ecological budget; the rules for staking and the allocation of staking pool. More than half of the budget goes to the game development. https://t.co/s1vq8v623g
— Wu Blockchain (@WuBlockchain) March 24, 2022
Yuga Labs, for example, offered entities like Andreessen Horowitz and Animoca Brands around 14 percent of its total supply, which is worth about $2 billion at today’s pricing, to help it launch APE. The company raised $450 million from the same venture capitalists on Tuesday, valuing it at $4 billion.
FTX, a cryptocurrency exchange, also contributed to the investment round, which will be used to expand Yuga’s development staff and oversee upcoming joint ventures, including a metaverse project called “Otherside,” according to Yuga.
Yuga may also utilise the funds to expand the Bored and Mutant Apes brands, with some of them making their debut on luxury products and a play-to-win game including APE tokens.
Looks like every single exchange is listing $APE.
I’m here for this.
— David Gokhshtein (@davidgokhshtein) March 23, 2022
What’s in store for APE in the future?
ApeCoin is only a week old, therefore there isn’t enough historical data to forecast future price swings.
Switching to lower-timeframe charts, however, reveals APE rising upward within a parallel ascending channel, with traders buying when the price reaches the lower trendline and selling when the price reaches the upper trendline.
As a result, APE’s current rebound move might see it continue its higher momentum toward the channel’s upper trendline near $15, which coincides with another March 18-19 resistance mark.
In the meantime, APE is fighting to regain $14.25 in interim support. Failure to do so could result in an early pullback down the channel’s lower trendline, which also happens to coincide with the green wave’s 20-hour exponential moving average (20-hour EMA).
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.