Significant increase in interest for APE coin: Is APE price preparing for a new rally?

APE coin, which experienced a significant price increase last weekend, tested a new resistance level at the beginning of the week and reversed. Since the weekend, it has doubled in value, showing over 100% growth. The increase in open positions and active APE option contracts on the horizontal trend-following meme coin on Tuesday, when whale movements began to decrease, is interpreted as a new bullish signal for meme coin.

Is the open interest in APE coin options a sign of price increase?

Following the launch of the Apechain network, the APE coin, which has shown a 135% increase in the last two days, indicates that the NFT and Metaverse ecosystems are strengthening again, and inactive coins may experience significant increases. The Metaverse currency APE gained high popularity with the price increase initiated by ApeFast. However, it is considered that the upward momentum is temporary and the price is inflated by temporary interest on social media. The investor interest, which began to wane after the launch of the Layer-3 network, was supported by the price decline, and the APE price remained somewhat flat and pulled back.

However, there has been a notable increase in open interest. According to data shared by PowerTrade, there has been a significant increase in open interest in APE options, which has been interpreted as a sign of a new upward momentum. PowerTrade stands out as the sole source offering options for APE coin on CEX and DEX platforms.

The (call) option $APE-ing continues. 🦧

Our $APE option OI has grown 850% in one day!

221,000 Calls are open and 42,000 Puts.

Expirations are situated between 22 Oct and 25 Oct with traders expecting a further pump.

Highest strike that was bought is a 23 Oct $2.2 Call.…

— PowerTrade (@PowerTradeHQ) October 21, 2024

According to PowerTrade, there has been a strong interest in options, which has increased by 850% within one day, reaching 263,000, and these data indicate a potential rally in the short term. The majority of transactions in options will expire between October 22nd and 25th. It is also noteworthy that investors have purchased out-of-the-money (OTM) call options up to $2.2. These options are 50% higher than the current price.

The increasing interest in non-cash option in any asset intensifies the expectation of a potential rise in the future. The increasing interest in non-cash options, which is one of the fundamental investor strategies, is interpreted as the potential for significant gains for investors with an upward price increase.

October 22 APE coin current price outlook

APE coin currently shows a 2.78% increase and is trading at $1.51. After testing the most important peak of the day at $1.64, the meme coin showed a decrease, with a market value of $1.13 billion and a 19% decrease in trading volume. The decline in trading volume in the last 24 hours indicates a loss of investor interest. The price is trading below the weekly high of $1.75 and the highest value since April.

APE coin technical chart BB and RSI Source: CoinmarketcapThe price on the candle chart is above the Bollinger Bands, which is interpreted as increasing buying conditions. Overbought conditions indicate that the price could retreat, and the expansion of the Bollinger Bands indicates high volatility in price movements.

Currently, there has been a decrease in the Chaikin Money Flow (CMF) indicator along with a pullback in price, indicating a decrease in money inflow. The current price has started to rise above the short-term 50 EMA and long-term 200 EMA for the past two days. Additionally, the ADX in the DMI indicator is moving upward, indicating that the current trend's strength may continue for a while longer.

Finally, the Relative Strength Index exceeded the 70 level and reached 81. The RSI index, indicating that APE coin is overvalued, suggests that the meme coin's price is high and a correction may occur.

The information in the text is purely for informational purposes. It does not constitute any investment advice. Writer and kriptoparahaber.com are not responsible for your profit or loss due to your investments. Ultimately, investment is based on many factors such as knowledge, experience, research, and personal decisions.

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