• ApeCoin (APE) is an ERC-20 token powering Yuga Labs’ web3 ecosystem, and has recently seen a strong rally of 70% since the start of the month, and 130% versus last year’s lows.
• The rally in APE is being driven by a combination of dovish expectations for Fed tightening in the coming quarters and growing signs that the bear market in crypto might now be over.
• Investors are eyeing a near-term break above resistance in the $6.50 area, which could open the door to a push higher to the summer 2022 highs in the $7.70 area, or even back to the all-time highs in the $27.80 area.
The cryptocurrency ApeCoin (APE) has been making headlines lately, with a strong rally of 70% since the start of the month pushing it to near $6.10. This represents a 130% surge from last year’s lows in the $2.60 area, and has APE investors wondering where the token could be headed next.
Analysts attribute the recent surge in APE to a combination of factors, most notably the recent dovish expectations for Fed tightening in the coming quarters. This has helped create an environment of easing financial conditions, which has in turn led to an increase in risk appetite in the cryptocurrency space. This has been further bolstered by growing signs, both technical and on-chain, that the bear market in crypto might now be over.
These factors have helped to create a bullish outlook for APE, with investors now eyeing a possible break above resistance in the $6.50 area. Such a break could open the door for the token to reach its summer 2022 highs in the $7.70 area, or even back to its all-time highs in the $27.80 area.
Of course, it’s not just APE that is benefiting from the current risk-on atmosphere in the crypto market. Other altcoins have also seen strong gains, many of which offer investors the potential for even higher returns than ApeCoin. While these coins may be riskier than APE, they also offer the potential for significantly higher rewards.
Ultimately, the future of APE and other cryptocurrencies will depend on how investors view the risks versus the rewards. With the current risk-on atmosphere in the crypto market, it looks like the rewards could outweigh the risks for now. However, it is still important to do your own research and understand the risks involved before investing in any cryptocurrency.