ApeCoin (APE) rallied to start the week as traders considered Yuga Labs’ decision to open its Otherside metaverse for selected users. The token broke out of a pattern that hinted at a further 45% price increase by September 2022.
Metaverse euphoria can also be experienced
APE’s price surged by almost 23.5% week-to-date to reach $6.12 a token on July 19.
The weekly gains were part of a rally that began on July 16. Interestingly, Yuga Labs invited 4,300 players of its Otherside gaming metaverse for a demo — and the tour of its Bored Ape avatar online platform — on the day of APE’s rally.
That suggests traders purchased APE after taking cues from the Otherside update, given it serves as a governance token at ApeCoin DAO. This decentralized autonomous organisation (DAO), powers the ecosystem of apps, services, and brands deployed by Yuga Labs as well as third-party brands like Otherside.
APE price aims for a 45% rally
APE also exited a technical set-up called the ascending triangular because of the Otherside euphoria.
Ascending triangles can be considered continuation patterns. However, there are rare cases when ascending triangles form at a bottom trend, which can lead to strong price reversals.
Related: Time to accumulate? 5 sectors to be on the lookout for during crypto winter
It appears APE’s ascending triangle had formed at the end of its downtrend. That is because the token rallied by over 100% after bottoming out locally near $3.00 on June 15, followed by a break above the triangle’s upper trendline near $5.22 on July 18.
Technical analysis rules dictate that a breakout that originates from an ascending triangular pattern pushes the price north as high as the maximum height of the triangle’s upper or lower trendlines. APE is now at $8.40, a 45% increase from current levels.
Conversely, a close below the triangle’s upper trendline could trigger the prevailing bearish breakdown setup, with the profit target sitting below $3.50.
These opinions and views are solely the author’s. They do not necessarily reflect the views or policies of Cointelegraph.com. You should research all aspects of trading and investment before you make a decision.