ApeCoin price continues its bearish trend after a several-month decline since the beginning of the year. Additionally, the altcoin will hold a massive token unlock event hours later. Crypto analyst Lockridge Okoth says this event could deepen the decline for the altcoin, which is trying to recover.
ApeCoin token unlocks: 40.60 million tokens will be released
As you can follow from Kriptokoin.com, investors follow large amounts of un-lock events closely. Because it has the potential to have a serious impact on the price. There is a cliff token unlock event in the ApeCoin ecosystem on September 17. There are hours left for this event. Unlike the linear method, ‘cliff token un-lock’ events are expected to disrupt market stability by unlocking a certain amount of tokens after a certain period of time. In the equivalent linear option, tokens are released according to a linear schedule such as monthly or annually. Thus, this method provides some price stability.
The altcoin project will unlock 40.60 million APE according to its schedule. These are worth approximately $46.69 million at current prices. Tokens will be allocated to the Yuga Labs ecosystem and its founder, treasury and launch contributors, as you see in the table below.
APE token unlock eventWith these buyers, expectations are that there will be great selling pressure. Especially if we look at it from the perspective of those who want to make a quick profit from the allocation. Accordingly, launch participants who are likely first entrants or investors will prefer this route. The same can be said for allocations that include community members, investors, airdrops, and rewards. Selling pressure occurs as token holders avoid being caught in exit liquidity. It is possible that investors will immediately move to sell their allocations, causing a selling pressure in the price.
Altcoin price prediction: History says there will be a decline!
On August 17, the last abyss token unlock event, the ApeCoin price dropped 15% on a daily basis. Cumulatively, APE fell approximately 35% between August 15 and 17. If history repeats itself, the altcoin price is likely to drop below its initial price of around $0.957.
Ichimoku Clouds continue to follow the ApeCoin price from above. This is a clear indication of a bearish trend that adds to the downside potential for APE. The overall look is also hard to ignore. Because the altcoin records an endless bottom and top levels. The position of the Relative Strength Index (RSI) at 21 is also worrying, and the negative Awesome Oscillator worsens this situation, creating a favorable environment for the bears.
APE 3-day chart.Conversely, if investors want to buy the dip, it is possible for APE to head north with rising momentum. A sustainable accumulation pattern could bode well for the altcoin price, with a possible confirmation above the conversion line (blue band) and baseline (red band) of the Ichimoku indicator at $1,371 and $1,718, respectively.
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