ApeCoin (APE) has experienced a significant price decline, falling by nearly 85% from its peak of $6.437 in January. The cryptocurrency is facing a potential challenge as a cliff token unlock event is scheduled for September 17, where 40.60 million APE tokens, valued at approximately $46.69 million, will be added to its circulating supply.
Most of these newly unlocked tokens will be allocated to launch contributors, the treasury, and the Yuga Labs ecosystem. This influx of tokens into the market is expected to create significant selling pressure, particularly from early investors and launch contributors seeking to profit from their allocations.
Historically, during the previous cliff token unlock event on August 17, ApeCoin’s price dropped by approximately 15% on the day of the unlock, resulting in a cumulative decline of around 35% between August 15 and 17. If a similar pattern repeats itself, ApeCoin’s price could potentially fall below its initial debut price of approximately $0.957.
ApeCoin Price Decline and Upcoming Token Unlock Event
Technical indicators, including the Ichimoku Clouds and the Relative Strength Index (RSI), suggest a bearish outlook for ApeCoin. The RSI currently stands at 21, indicating bearish momentum, and the negative Awesome Oscillator reinforces the bearish case.
However, a potential turnaround could occur if investors decide to buy the dip, leading to a rise in RSI and sustained accumulation. A confirmation above the Ichimoku indicator’s conversion line and baseline at $1.371 and $1.718 levels, respectively, could signal a positive trend for ApeCoin.
As the cliff token unlock event approaches, investors should closely monitor the ApeCoin market for potential price volatility and prepare for various scenarios, including the possibility of further price declines.