Top Token Unlock Upcoming This Week- Is a Major Volatility on the Horizon?
The crypto markets are getting stronger and stronger as Bitcoin sustains strongly above the gains. With the rise in optimism among investors, the altcoins have also gained immense strength; some among them have surged over 45%. However, the volume over the markets has drained, suggesting the market participants are hunting for new altcoins as some of them experience a rise of over 250% in trading volume since the start of the day. Now that more tokens are expected to flood the market in less than a week, this could increase the volatility of the token.
The question arises whether the rise in volatility will positively impact the prices or, with the increase in the supply, a drop in demand will drag them lower.
A token unlock is generally the release of previously locked tokens into circulation, making them available for trading and other purposes. They are kept locked for a certain period for various reasons, and preventing the selling pressure is one of the important ones. As per the data from cryptorank, 3 main tokens are about to face an unlock in the next seven to ten days.
The above chart shows Sui, Ethena and Optimism, along with 4 other are about to face a token unlock soon. The prices of SUI, OP and ENA have been displaying enough strength, and hence, a rise in the circulation may impact them negatively.
What’s Next for Prices of SUI, OP & ENA?
Sui’s price broke out of a pattern and triggered a huge rise of over 55% and continues to remain elevated, hinting towards a bullish continuation. The price has just surpassed a crucial resistance at $3.57, and a day close above the range could validate a fresh upswing towards the ATH, probably above $6. In the meantime, 88.34 million SUI tokens, 0.88% of the supply, worth over $300 million, are expected to be unlocked on 02 May, which could hinder the progress of the rally for a while.
The bears tried hard to restrict the Optimism price rally below $0.855 after recovering from $0.58; however, the latest rebound in the price has revived bullish possibilities. The price is believed to keep rising until it reaches $1, and if 32.21 million tokens are unlocked on 01 May, the momentum of the rally could shake up for a while. However, if the price sustains above the support at $0.75, a rebound back to $1 could be imminent.
On the other hand, Ethena’s price has also experienced a similar price action after rebounding from the local lows close to $0.26. On 03 May, 94.19 million worth over $32 million will be unlocked, raising the possibility of some selling pressure. However, if the ENA price manages to sustain above $0.5, the token is expected to maintain a sustained ascending trend ahead.
