Apecoin (APE) Doubles in Price as Apechain Announcement Sparks Rally

Apecoin (APE) started the new week as a market overachiever, doubling its price over the weekend. The APE rally started after the announcement of Apechain

Apecoin (CRYPTO: APE) doubled in price over the weekend, making it one of the market's overachievers.

The rally comes amid anticipation for Apechain, which sparked hopes for a higher price range for APE.

Here's a closer look at the latest developments and what traders are saying about the token.

What Happened: Apecoin doubled in price in just two days of trading, finally breaking out of a lull that saw the token trade sideways for months.

APE rallied from $0.74 at the open of trading on Friday to reach the $1.74 level. The token last traded at $1.70.

APE is trading close to a one-month high, which could signal another imminent vertical rally.

The token may be on track to recover its high point of the year, which was $2.07, last achieved in March.

The next crucial level for APE to claim for a higher range would be a daily close above $1.83.

The asset now has to garner enough enthusiasm after the Bored Apes brand slowed down since the latest bull cycle.

APE failed to meet expectations for high valuations and has been on a steady decline since 2022. Some also view the project as unreliable, being tied to the Bored Ape NFT brand.

For some traders, the current price range is still too far from their cost basis, especially for those who bought near the top around $25-$27.

Others are looking at Yuga Lab as a promising team and believe APE could still expand by 200-300%, lining up among the top 50 tokens or higher.

What Else: Apecoin shorts increased during the recent rally.

The recent APE rally failed to spark a return of the token. Instead, there was a predominance of short positions, at a ratio of about 60% to 40%.

APE open interest jumped in the past three days, coinciding with a buildup of short positions.

APE rallied after traders opened more short positions over the past weeks.

With the new short positions open, traders may attempt to cover those positions, leading to a short squeeze.

So far, short and long liquidations for APE are balanced.

One whale saw the latest 100% rally as an opportunity to cut losses.

The whale unstaked 590K APE and sold all 790K APE from their entire portfolio at a loss. The wallet’s cost basis was $3.85 per token.

Even the additional 208K APE in accrued staking rewards was not enough to compensate for the whale’s loss.

APE had the advantage of representation on Binance and Coinbase and was considered a blue-chip token.

The token is also closely tied to Yuga Labs and the Bored Ape Yacht Club brand.

APE went on a slide after one of the top investors started selling.

Jeffrey Huang, who is known as Machi Big Brother, shed his APE holdings following a disagreement with the ApeCoin DAO.

The rage-selling further depressed the price of APE, adding to the pressure against the token.

However, during this latest rally, Machi Big Brother sent out a message in support of APE.

Machi Big Brother also sent out support for FRIEND, the token of the now frozen Friend.tech.

"$APE now $FRIEND next," Machi Big Brother tweeted.

Traders are skeptical about Machi Big Brother’s influence to revive those assets from a previous bull market.

In addition to shilling APE, Machi Big Brother is starting to mention GOAT, one of the AI-inspired meme tokens, as the next hot thing.

Bored Apes Floor Price Recovers: Bored Apes rallied along with the APE token.

The floor for BAYC rose to 13.20 ETH, approaching levels not seen since September.

BAYC remains one of the most widely held and traded collections, despite the slowdown of all NFT activity.

BAYC also achieved its highest trading volumes since May, leading supporters to consider the collection may be back.

The BAYC collection is now aiming for cult status, similar to some meme tokens.

The recent APE rally and the BAYC recovery also followed the ApeFest full moon party in Lisbon.

The BAYC NFT may now see more significant activity as they are bridged onto the new Apechain.

The chain will grant all BAYC holders a new identity and a Yuga ID for account abstraction.

Apechain will also work to onboard more games and collections, going beyond BAYC and Mutated Ape Yacht Club (MAYC).

Otherside Meta, an NFT feature with collectible Koda creatures, will be among the first Web3 games to join the new chain.

Yuga Labs will also try to revive

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