- Ape’s breakout signals bullish potential, but resistance at $2.70 remains key.
- Declining address activity could test continued momentum despite positive on-chain and technical data.
from ApeCoin [APE] the recent price breakout from a descending triangle pattern on the weekly chart has fueled excitement in the market, signaling a possible shift toward bullish momentum.
At the time of writing, ApeCoin was trading at $1.86, down 2.61% in the past 24 hours, but technical indicators point to room for further gains.
The RSI stood at 65.94, reflecting strong momentum, while a bullish moving average crossover, where the shorter MA has surpassed the longer MA, confirms an upward trajectory.
However, with a critical resistance level looming at $2.70, the path ahead remains uncertain.
Source: TradingView
APE on-chain data shows mixed signals
On-chain metrics provide a nuanced perspective on APE’s prospects. Net network growth shows a modest bullish signal of 0.63%, and large trades are up 2.45%, underscoring interest from key players.
Moreover, the concentration among holders shows a small bullish tilt of -0.03%. However, the in the money measure remains neutral at 0.42%, indicating a lack of overriding sentiment.
So while the signals in the chain are bullish, they reflect caution and emphasize the need for continued momentum.
Source: IntoTheBlock
Address activity decreases significantly
However, addressing activity metrics raises concerns about ecosystem involvement. Over the past seven days, new addresses have fallen by 10.96%, while active addresses have fallen by 6.58%.
Additionally, zero-balance addresses fell 13.67%, reflecting declining activity across the board. This decline in address participation could test Ape’s ability to maintain its breakthrough unless investor interest returns.
Source: IntoTheBlock
The APE derivatives market remains cautiously optimistic
In the derivatives market, Ape’s OI-weighted funding rate currently stands at 0.0518%. This indicates neutral to slightly bullish sentiment among traders, without significant bearish pressure.
However, the lack of overwhelmingly bullish sentiment suggests that traders remain cautious as they wait for stronger catalysts to drive a decisive rally.
Source: Coinglass
While Ape’s breakout from the descending triangle pattern and bullish technical indicators point to strong upside potential, several factors could determine the sustainability of this momentum.
Resistance at $2.70 remains a key hurdle, and the recent decline in addresses activity, with a decline in the number of new, active and zero-balance addresses, raises concerns about long-term investor engagement.
Read ApeCoins [APE] Price forecast 2024–2025
The figures on chain and financing rates show mixed, but cautiously optimistic signals, highlighting the need for sustainable participation from both private and institutional investors.
Therefore, Ape’s ability to continue its bullish trajectory depends on overcoming these challenges, breaking through key resistance levels and fostering a more active and engaged ecosystem.
