ApeCoin (APE), the governance token for the APE ecosystem, has seen a remarkable price jump of 66% in just the last 24 hours. On October 19, it was priced at $0.75.

Now, it has crossed the $1 mark and shows potential for even more growth. So, what’s driving this sudden surge in APE’s price? Let’s break it down.

The launch of ApeChain has significantly boosted ApeCoin's trading volume. According to BeInCrypto, APE’s price increased mainly because of the new Layer-3 blockchain called ApeChain. This blockchain was developed as an Arbitrum Orbital Chain by the ApeCoin Decentralized Autonomous Organization (DAO). After its launch, ApeCoin made its way back into the top 100 cryptocurrencies, as reported by CoinGecko.

On social media, ApeCoin announced, “Bridges are live. Bring your tokens to ApeChain now to start earning native yield on APE, ETH, and various stablecoins.”

Since its launch, ApeChain has drawn comparisons to Pump.fun on Solana, and trader interest is rising. In just three hours after going live, the Arbitrum-based Camelot DEX reported that ApeChain’s trading volume had already exceeded $5 million.

Additionally, ApeCoin’s total on-chain volume saw an impressive surge of nearly 3000% in the past 24 hours, approaching the $1 billion mark, according to Santiment data. If this trend continues along with the price increase, APE could potentially soar past $1.25 in the coming days.

Another key factor is the network growth of APE, which tracks the number of new addresses interacting with the protocol. On October 18, this figure stood at 83. Now, it has skyrocketed to 3,235. This surge indicates a strong influx of new participants adopting the APE token, reflecting significant interest from developers and projects eager to utilize ApeChain’s capabilities.

If this trend keeps up over the next few days, demand for APE might rise, putting upward pressure on its price.

From a technical standpoint, ApeCoin’s price has shown impressive growth after breaking out of a descending trendline that had been in place since June. This trendline had previously made it difficult for the altcoin to rise, causing it to fluctuate between $0.55 and $0.85 for quite some time.

Currently, the Moving Average Convergence Divergence (MACD) indicator has reached a significantly positive value for the first time in almost a month. The MACD is a momentum indicator; negative values indicate bearish trends, while positive values suggest bullish trends.

Right now, the momentum around APE looks bullish, suggesting that its value could continue to rise. If this trend persists, ApeCoin’s price might reach $1.47 and could even approach $2.

However, if APE holders decide to take profits after a long downturn, the token might struggle to reach these heights, potentially dropping to $0.86.