What is an All-Time-Low (ATL)?
The meaning of all-time low (ATL) is the lowest price point that the crypto asset ever registered. Depending on where it appears, it can be a bearish or bullish sign.
Contrary to the ATL definition, all-time highs (ATH) represent the highest price registered for that token. Given that ATLs are very rare and ATHs are more frequent, the latter are more useful for crypto analysis.
For most cryptocurrencies, ATLs tend to match with the earliest tradeable price (also known as the Initial Coin Offering, ICO). Below is the Bitcoin ATL.
In the example below, unlike Bitcoin, Luna Classic ($LUNC) reached its all-time low much later:
Understanding the Impact of All-Time Highs and Lows in Crypto
To better understand the meaning of ATL and ATH crypto, it’s worth knowing that not all tokens start from $0. Before the ICO, creators can set an initial price or run pre-sales with lower ones. For example, one of the founders of Ethereum, Vitalik Buterin, launched ETH at $0.31.
There are even airdrops like Celestia that gave away 60 million free $TIA tokens, and its ATL is the original price of $2.03.
Here’s the potential meaning of different ATHs and ATLS:
- Very early ATL and late ATH: This is the normal cryptocurrency price progression. Unless there’s a catastrophic incident (see $LUNC), most large coins never return to ATL prices.
- Early ATH and ATL: This is common for new projects with low market capitalization. Whether it’s the initial excitement or automated arbitrage, many tokens tend to inflate prices on the launch day and quickly lose value over time. Whether they return or not comes down to fundamental analysis.
- Late ATL after the ATH: This might mean a major incident is threatening the projects’ survival, especially if it’s below the earliest price. Buying this ATL can still be profitable, but in the long term, prices will likely stay around $0.
The interpretation can vary for long-term cycles:
- In bear markets, ATLs are more likely, and ATHs can still occur on new projects. Tokens might disappear completely due to low liquidity and reappear after the bear market. In the case of ATHs, it’s recommended that they be sold early.
- In bull markets, ATHs are frequently tested and constantly tested. ATLs are still normal for new tokens during corrections. For larger coins, however, ATLs are concerning, even associated with inactive communities, cyber-attacks, rug pulls, token migrations, and others.
Conclusion: Crypto Investing At All-Time Lows
As the lowest buying point, ATLs are useful landmarks to measure the maximum ROI possible throughout the token’s lifetime. They tend to appear in early project stages, followed by all-time highs. Finding an ATH cryptocurrency after the launch can be a buying opportunity depending on the cause.
Since projects aren’t guaranteed to recover, investing at near-zero ATLs can be a lot riskier than buying at all-time highs. Instead, investors look for entry points at relative lows, such as local resistance zones or the lowest 24-hour price.
