The ApeCoin community is in the spotlight today with a significant development. Accordingly, a proposal to create a native chain was put to a vote and accepted by the majority. ApeCoin is working with Arbitrum, Horizen Labs, and Offchain Labs for the development of ApeChain. Following the development, there has also been an increase in the price of APE. Let’s look into the details of the development.
ApeCoin Partners with Arbitrum for Blockchain Development
ApeCoin has partnered with layer-2 scaling solution Arbitrum for the development of its native Blockchain. With this development, the APE token will be used as the native token for ApeChain. Additionally, Arbitrum’s AnyTrust chains will limit the selling pressure emerging on APE.
AnyTrust chains are an Arbitrum transaction model for guaranteed security at low cost. The selling pressure on APE is significant because the ApeCoin DAO could sell APE to cover the costs of sending blocks to the Ethereum Blockchain. Therefore, we see APE holders making a technology choice that helps alleviate selling pressure compared to traditional options.
APE will continue to be at the center of the ApeChain economy. Accordingly, the proposal accepted by the community majority vote indicates that the use of APE will increase for gas, staking, governance, and more. ApeChain will remain compatible with Ethereum and will continue to derive its security from Ethereum.
APE Price Rises 6% in a Day
Following this development, looking at the price of APE, the cryptocurrency has experienced a 6% increase in value on a daily basis. The price has reached levels of $1.68. The token’s weekly increase is at levels of 16.7%. At this stage, we see that APE has exited the downtrend as of February 8th.
After the reversal of the trend, the cryptocurrency APE price has been steadily rising towards the 61.8% Fibonacci retracement level, which marks the decline from the December 2023 peak. APE price encounters resistance at the 61.8% Fibonacci level of $1.638 and the 78.6% Fib level of $1.748 on its way to the December 2023 peak of $1.886.
Two technical indicators, the Awesome Oscillator and MACD metric, support the ongoing trend indicating positive momentum.
It is likely for APE to rise at such a stage. A daily candlestick closing below the 50% Fibonacci retracement level at $1.562 would mean that APE will break the support before continuing its upward trend.
