What Is ATL (All-Time Low) in Crypto?

All-time low in crypto refers to a token’s lowest price since it began trading publicly. Commonly known as ATL, it is an essential point of reference for multiple trading strategies. Value investors often use it to assess a token’s current price, fundamentals, and ATL to find possible dip buying opportunities. In contrast, short sellers monitor cryptocurrencies that could break below ATL prices to profit from potential crashes and continued downtrends.

Understanding crypto’s all-time lows can help traders better manage investment risks, get a bigger picture of a token’s current performance, and identify whether a project is undervalued.

What Does All-Time Low Mean in Crypto?

An all-time low, or ATL, in crypto marks the lowest price a digital asset has ever traded at. While often associated with recessions and crashes, a crypto ATL is a historical performance indicator best understood in the context of other cryptocurrency market factors.

For instance, the Pure proof-of-stake ($PPoS) crypto Algorand ($ALGO) reached an ATL price of $0.08751 per token in 2023 following the latest crypto bear cycle and other events. However, the token’s price has bounced back by over 100% and remains a mid-tier altcoin in the crypto space.

For other markets, the all-time low definition is the same as the record low, which refers to the price floor in securities, commodities, and indexes.

Why Is ATL Important in Crypto?

ATL in crypto isn’t a trivial figure. It reflects investor behavior, market cycles, and broader market sentiment. Let’s discuss why ATL is an essential term for digital asset investing.

Cost-Effective Entry Points

Patient investors who understand a token’s fundamentals will find buying opportunities as its price bottoms out. To them, all-time lows mark a period where specific tokens are believed to be priced well below their actual value, with the expectation of future growth.

Other investors want cheap cryptocurrencies to buy, caring little about how fast or far their token investments would grow. However, they are excited that some previously expensive cryptocurrencies are now priced low enough for them to grab.

Bottoming of a Bear Cycle

ATLs often appear during the final phases of a bear market, when fear and investor uncertainty peak. At one point, buyers will prevent tokens from falling below all-time lows, which could mark the beginning of a significant market recovery.

For example, Cardano ($ADA) hit its ATL at $0.01735 in March 2020. After that, it surged to an ATH of $3.09 in September 2021, marking a 17,700% return. Although Cardano has since returned to a penny crypto, those who invested at its all-time low price without selling still have over 3,000% gains as of this writing.

Possible Shifts in Investor Sentiment

A sudden trading volume spike near ATL can indicate signs of shifting investor sentiment. Increases in activity at historically low prices often suggest that buyers and value investors are stepping in, either in anticipation of a reversal or because they believe the cryptocurrency will experience significant growth.

If many individuals attempt this strategy of investing near or at all-time lows, the result could be a significant price rebound. Oftentimes, this happens over a period after a cryptocurrency hits its ATL. As more individual traders enter the market, momentum can build, leading to a gradual price uptick.

How Does the Market Affect ATL?

All-time lows in crypto are often the result of larger market forces pulling down even the most established tokens. When the overall mood in crypto turns bearish, traders become more risk-averse and withdraw their positions. Understanding what drives these price spirals can help traders spot whether an ATL is a temporary dip or a sign of a long-term fall.

Here are a few common market factors that lead to new ATL levels:

• Market Crashes: Cryptocurrencies have been observed to follow cycles, surging and falling over specific periods. In 2018, the collapse of the ICO boom caused panic selling across even top projects, causing them to trade close to or past ATL levels.
• Regulatory Crackdowns: Lawsuits, bans, and new regulations often shake investor confidence. Fear can spread beyond a token and categories even if new policies don’t directly affect a specific crypto. Traders tend to liquidate assets to avoid risk, lowering prices.
• Scams and Security Breaches: Hacks, misuses of funds, founder controversy, and other scandals can tank crypto prices overnight. The infamous FTX exchange bankruptcy in 2022 led to the annihilation of the FTX exchange token.

When multiple market events and factors stack up, they can create the perfect storm for new crypto ATLs. Tracking these trends as they happen can help investors anticipate potential all-time lows and act accordingly.

How Does ATL Affect the Market?

When a cryptocurrency or the broader market reaches all-time lows, the impact can affect trading strategies and investments. ATLs often trigger intense emotional reactions that can lead to irrational trading activity. Some investors see this as a golden opportunity; others panic and sell to avoid more significant losses.

Here’s a quick breakdown of how ATLs affect traders across different methods and strategies:

ATL Success Example: Sui ($SUI)

An excellent example of a token that bounced back after hitting ATL is Sui ($SUI). After its launch, the crypto project faced early criticism regarding its tokenomics and heavy VC backing. This led to high selling pressure in mid-2023, eventually bottoming out at $0.3648 per token in 2023.

Despite initial backlash, the Sui Foundation remained active, rolling out community grants, updates to its Layer-1 protocol, and developer incentives. Eventually, the momentum was reflected in the crypto’s future price movement, giving buyers at ATL prices up to 1,300% returns.

ATL Loss Example: Terra ($LUNA) and TerraUSD ($UST)

Few tokens illustrate a total collapse better than Terra ($LUNA) and its algorithmic stablecoin, TerraUSD ($UST). In May 2022, $UST broke off from its US dollar peg, triggering a cascade of events that resulted in $LUNA’s price plummeting. Investors could only watch as $UST continued to break down, followed by the crash of the $LUNA token.

Even with the launch of Terra 2.0, which replaced the previous blockchain without an algorithmic stablecoin, damage was done. $LUNA never bounced back and is now a cautionary case study on the dangers of dependence on flawed algorithmic systems and unsustainable tokenomics.

How to Use All-Time Low in Crypto Trading

Many experienced investors use the all-time low to manage risk, analyze chart patterns, and find potential dip buying opportunities.

Risk Management Strategies

One of the most practical uses of ATL in crypto is in creating smarter risk management strategies, specifically through stop-losses. Traders can use the all-time low as a reference point when setting stop-loss orders, helping them prevent deeper losses should the price fall into a tailspin. Reducing these risks in the high-volatility crypto market can help investors stay afloat.

Additionally, ATL can guide position sizing. When a crypto trades near its bottom price, it’s typically considered high-risk, especially if it has no apparent signs of recovering. In this case, allocating a smaller portion of your portfolio to that trade can mitigate potential losses while exposing you to potentially strong price rebounds.

Technical Analysis

ATL can be a key support level for traders relying on technical analysis. When a crypto revisits its price floor, it often triggers a reaction from the market, leading to a potential price bounce or further downward correction. By charting these areas, investors can better predict future price behavior and determine where a token’s price will likely shift next.

Furthermore, ATL plays a role in identifying price action. Traders who observe tokens forming lower lows may see this as a bearish signal. However, if the crypto rebounds several times after approaching its ATL, it could indicate investor confidence and be the next crypto to explode.

Finding Undervalued Token Opportunities

Beyond reducing risks and plotting key areas on charts, ATL in crypto can be a point of opportunity. This often occurs when a fundamentally sound crypto project trades close to or breaks its ATL. It may be undervalued due to temporary market conditions or broader fear. Still, investors who believe in the crypto’s long-term viability could find favorable entry points at these price levels.

That said, not every ATL price means investors get a good deal. You need to look at why the token hit its ATL in the first place. Was this due to poor project performance, loss of public trust, or simply a general market correction? Considering crypto all-time lows with other metrics like recent project updates, trading volume, and community engagement will help you find genuinely undervalued tokens among those that might continue to decline.

Conclusion

It’s hard to predict whether or not an ATL in crypto will be the final floor price or just a temporary bottom that will break down again later on. However, combining a token’s ATL can provide unique insights into its risk level, recovery potential, and investor interest. Whether you’re looking to manage your trades more carefully or seize dip-buying opportunities, ATL gives you a broader context for future investment decisions.

As with any indicator, tool, or metric in crypto, ATL should not be the only guiding factor for your investment strategies. It’s best used alongside market adoption, token fundamentals, market trends, and other technical indicators. When used effectively, tracking all-time lows can be extremely helpful for both long-term and short-term market swings.

FAQs

References

1. Record Low (Investopedia)
2. Stop-Loss Order – Understanding How Stop-Loss Orders Work (Corporate Finance Institute)
3. Position Sizing in Investment: Control Risk, Maximize Returns (Investopedia)
4. Raising Money in the Crypto World Has Gotten a Lot Harder (The Wall Street Journal)
5. ‘Old-fashioned embezzlement’: where did all of FTX’s money go? | FTX | (The Guardian)

Why you can trust 99Bitcoins

10+ Years

Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.

90hr+

Weekly Research

100k+

Monthly readers

50+

Expert contributors

2000+

Crypto Projects Reviewed

Read more

Jose Aquino

Editor

Jose Rafael Aquino is a Filipino writer and entrepreneur that specializes in finance, technology, cryptocurrency, and sports. Versed in the startup tech space, he has written for websites such as The GUIDON, TradingPlatforms, StockApps, and BuyShares. Read More

Read Jose Aquino Articles