- ApeCoin price has been on a downtrend, falling almost 85% from its yearly high of $6.437 recorded in January.
- 40.60 million tokens worth $46.69 million will be added to its circulating supply on September 17.
- Most of the tokens will go to launch contributors, treasury, and Yuga Labs ecosystem.
- In the previous sequence on August 17, ApeCoin dipped around 15% on the unlocks date, down 35% from August 15.
ApeCoin (APE) price remains on its bearish streak after a sloppy multi-month fall since early in the year. After hitting what appears to be rock bottom for the altcoin, APE is attempting to recover, with the ecosystem's token unlocking event likely to deter it.
Also Read: Solana price readies for a fall after FTX gets approval to dump $3.4 billion worth of crypto.
ApeCoin token unlocks 40.60 million tokens to be unleashed
The ApeCoin ecosystem has a cliff token unlocks event slated for September 17. As reported, unlike in the linear method, cliff token unlocks see a specified amount of tokens unlocked after a specified duration and is expected to disturb market stability. For its counterpart, the linear option, tokens are paid out on a linear schedule, say monthly or yearly, thus delivering some level of price stability.
Up to 40.60 million APE tokens are due for unlocking, with their value totaling approximately $46.69 million at current rates. The tokens will be allocated to the Yuga Labs ecosystem and its founder, the treasury, and the launch contributors, as indicated in the chart below.
APE token unlocks
With these recipients, selling pressure is anticipated to be huge, particularly for launch contributors who are likely the early entrants or investors, as they may be looking for a quick profit out of the allocation. The same can be said for allocations involving community members, investors, airdrops, and rewards. The selling pressure comes as token holders escape being caught in the exit liquidity. The possibility of investors offloading the reward allocations for immediate selling sets the price up for imminent selling pressure.
ApeCoin price forecast ahead of cliff token unlocks
In the last sequence of cliff token unlocks on the APE network, August 17, ApeCoin price fell 15% on the D-day. Cumulatively, it dipped around 35% between August 15 and 17. If history repeats itself, the altcoin could fall below its debut price of around $0.957.
The Ichimoku Clouds continue to track ApeCoin price from above, a clear indication of bearishness that adds to the downside potential for APE. The overall outlook is also hard to ignore, with the altcoin recording an endless streak of lower highs and lows.
The position of the Relative Strength Index (RSI) at 21 is also worrisome, worsened by the negative Awesome Oscillator, making the case for the bears.
APE/USDT 3-day chart
Conversely, with investors looking to buy the dip, the RSI could tip north to show rising momentum. A sustained accumulation pattern could bode well for ApeCoin price, with a possible confirmation above the Ichimoku indicator's conversion line (blue band) and the baseline (red band) at $1.371 and $1.718 levels, respectively.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogecoin price bullish outlook intensifies as DOGE turns 10

Dogecoin price has sustained the bullish outlook since October 18, when the broader market turned green, leading meme coins in an uptrend, which is no mean feat. The 65% climb has ushered the dog-themed cryptocurrency to its tenth birthday since its official launch on December 6, 2013.
Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally

The Bitcoin-based BRC-20 meme coin, which had people confused as being an actual valuable token, is now slowly creeping up to that status. ORDI price rise over the past couple of days has been astonishing, and with BTC driving the price and crossing $44,000, ORDI is also gaining rapidly. But not for long.
Arbitrum price veers as hard fork proposal receives 99.84% votes in favor

Arbitrum's price surpassed expectations as the altcoin managed to restrict the fluctuation over the past 24 hours. This is because ARB was forecasted to rally following the result of the proposal to essentially hard-fork the chain.
Bitcoin price hits $44,000 as Coinbase CEO speculates BTC could be key to extending Western civilization

Bitcoin (BTC) price has revisited levels last seen in April 2022, prior to the collapse of the Terra UST ecosystem. Its foray above the $42,000 psychological level has market watchers enthused.
Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.