ApeCoin, the governance token of the APE ecosystem, has seen a remarkable price surge of 50% in the last 24 hours due to the launch of a cross-network bridge and other updates. This price spike highlights the key changes in the ecosystem and user engagement.

Reasons Behind ApeCoin's Surge

The primary reason for ApeCoin's recent price rally is attributed to the launch of ApeChain, a new Layer-3 blockchain. The cross-chain bridge now enables seamless transfers of APE, Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) between ApeChain, Ethereum (ETH), and Arbitrum (ARB) networks, significantly broadening the token's functionality in the Yuga Labs ecosystem.

ApeCoin’s Role in the Ecosystem

Following the launch of ApeChain, APE's utility has expanded significantly. APE tokens can now be used for yield farming, allowing holders to automatically generate returns on APE, ETH, and stablecoins. APE also serves as the primary gas token of ApeChain, increasing its importance for transaction fees and voting within the ApeCoin DAO.

Price Level Analysis and ApeCoin Outlook

Currently, data from CoinGlass indicates the key liquidation levels for APE are at $1.548, with most intraday traders leveraging around this figure. Exceeding this level may lead to the liquidation of about $2.59 million in short positions. The Relative Strength Index and Stochastic RSI are in the overbought zone, suggesting a potential correction in the future.

The launch of ApeChain and its accompanying updates have bolstered ApeCoin's position within the ecosystem, enhancing its utility and driving the token's value upward. However, current indicators suggest a potential future price correction due to high overbought levels.