ApeCoin jumps 17% in two days on news of Bored Ape movie

NEW DELHI (CoinChapter.com) — ApeCoin, the token associated with Yuga Labs’ Bored Ape Yacht Club (BAYC) nonfungible token (NFT) collection, rallied 17% in two days to over $12.50

Traders are promoting the token, which has no inflation or burning mechanism, as the next Shiba Inu, the memecoin that gained 46,000,000% in 2021. However, the comparison is not much of a compliment, considering SHIB and other memecoins rely on the hype for bullish cues.

Although the team behind ApeCoin states the token is a memecoin, they are also trying to build an ecosystem around the cryptocurrency. ApeCoin’s website states the token will serve as a ‘decentralized protocol layer for community-led initiatives.’

APE prices moved above a 12-day long descending trendline on Apr 10 with a nearly 10% intraday gain. However, bears’ profit taking is visible on the 3-hour (3H) charts.

Also Read: Coinbase takes on Hollywood with a Bored Ape Yacht Club (BAYC) film trilogy.

APE failed to break above immediate resistance near $12.4, which has rebuffed ApeCoin’s uptrend repeatedly since Apr 5. Therefore, the BAYC token would need to move and consolidate above immediate resistance before trying to target resistance near $13.

Trend-based momentum oscillator MACD continues to be bullish for ApeCoin on the 3-H charts. However, bars on the MACD histogram are contracting, indicating the bears are moving to book profits.

The MACD histogram charts the difference between the MACD line (difference between 12-3H and 26-3H EMA) and the MACD signal line (9-3H EMA of MACD), hinting at an increasing bearish momentum for APE.

In addition, the token’s 3-H candles show long upper wicks, further indicating that bears are selling on small relief rallies.

ApeCoin RSI Stays Shy Of Overbought Levels

ApeCoin’s relative strength index remained shy of overbought levels on the short-term charts. APE’s RSI is currently neutral, clocking 59.81 on the 3H chart. RSI value above 70 would make APE overbought, and traders would likely start a sell-off.

If APE fails to rally upwards, the token’s 100-3H moving average (purple wave) provides immediate support near $11.7.

In addition, ApeCoin also has support from its 20-3H MA (red wave) near $11.4, a price level that served as resistance for the token between Apr 6 to Apr 12.

Also Read: BAYC’s ApeCoin has slumped over 70% from debut high already.

ApeCoin token lacks fundamentals to help push its prices upwards, with the token down nearly 60% from its launch price of $28 (Binance). Until BAYC comes up with use-cases for the token, APE would continue to rely on social media for bullish cues.

As memecoins have shown, social media is not a reliable source to fuel uptrends.

At the time of writing, APE was trading at $11.94, up 3% on the day.