Although the price of Bitcoin hit its bottom in November of last year, a significant portion of altcoins reached historic lows this year. The year 2023 has been devastating for inflationary altcoins in particular. The rapid fluctuations and negative sentiment in the BTC price have dampened the risk appetite of altcoin investors. As a result, many popular altcoins have reached their all-time lows or even lower.
Although it hasn’t been on the market for long, the price of APE Coin has fallen well below double-digit levels due to its continuously increasing circulating supply. In fact, it hit its historic low, losing even $1. The popular metaverse altcoin reached $0.99, the all-time lowest price, on October 9th and has been steadily rising ever since.
The price of APE has been declining since it reached $6.41 on January 26th. The downward movement was swift, and as the circulating supply increased, the price plunged even further. Within 256 days, we have seen the price lose 85% of its value.
The price is still struggling to regain critical support levels after losing the horizontal support area of $1.10 and reaching the all-time low (ATL) level.
Recently, the amount of APE being moved from exchanges by whales has caught attention. Machi Big Brother withdrew 2.5 million APE, and another whale address withdrew 1.37 million APE from the Binance exchange. This intense accumulation occurred when the price lost $1.
However, it should be noted that the APE Foundation will further inflate the current supply by issuing 15.6 million new tokens on October 17th. The circulating supply of APE is currently 368 million, so the current supply will increase by 4%. If market sentiment remains negative, a similar decline can be expected.
So, is the price at the bottom? The daily RSI supports the possibility of the price hitting bottom. The main reason is the bullish divergence formed in the RSI, which also helped the price exit the oversold zone. If the rise of APE Coin continues, it could test $1.3 and $2.05.
However, closings below $1.05 would invalidate the bullish expectations. Moreover, a deeper dip is likely in this case. In a bearish scenario, $0.91 could become a new ATL zone.