ApeCoin [APE] was one of the hot altcoins in the crypto market in the past 24 hours. It has ralled 22% in 24 hours, and its Open Interest [OI] was up by nearly 40% in a day.
The daily trading volume has surged by 230%, according to CoinMarketCap data.
An AMBCrypto report had covered its swift gains a few days ago.
On Friday, the 24th of April, APE rallied by 174.4% within 20 hours. The move spanned from $0.101 to $0.278. Since making this local peak, APE retraced 50.3% over the weekend to reach the $0.138 support on Monday, the 27th of April.
The high volatility could have been engineered, social media posts speculated.
Driven largely by whale activity, AMBCrypto pointed to how a possible APE insider made $2.27 million by going long before the surge, then switching to a short position to catch the retracement.
The race to profit from the APE rally
In recent weeks, the tough market conditions have primed more traders to chase speculative pumps, hoping to make easy money by riding the move higher. The derivatives data showed that APE’s weekend retracement did not dissuade traders from chasing the current move.
CoinGlass data showed that ApeCoin’s daily perpetuals volume was $604 million, up 265.6% from the previous day. The top trader long/short ratio was at 1.375, meaning whales and big traders preferred to remain long.
These top traders might be on to something. From a structural standpoint, APE has a bullish outlook on the 1-day chart. The break (orange) came on Friday, the 17th of April.
Since then, the $0.1378 high has also been taken out and retested as support. The momentum does not show a divergence on this timeframe, and the explosive OBV reflected the spot trading volume in recent days.
Despite the possible insider trading and the negative implications for the rally from that possibility, traders can maintain a bullish outlook. The technicals and price action support it.
The retest of $0.1368, the 78.6% retracement level of last week’s rally, has yielded a bullish reaction. As things stand, the $0.278 and $0.320 levels are the next bullish targets.
A drop below $0.136 would be a warning to the bulls, while a plunge below $0.0984 will invalidate this idea.
Final Summary
- ApeCoin has a bullish outlook on the price charts after its explosive move past local highs last Friday.
- High speculative interest could introduce increased volatility and liquidity hunts in the short-term, but the uptrend remains intact for now.
