The crypto market is expecting a significant influx of tokens totaling over $620 million between August 25 and September 1. This event may impact price movements of several projects, particularly Sui, Optimism, and Solana.
What Token Unlocks Are, and Why This Week Matters
A token unlock occurs when locked tokens become available for trading. This increases the circulating supply and can create short-term selling pressure. There are two main types: cliff unlocks, which release large amounts at once, and linear unlocks, which spread the release over many days.
Sui and Optimism: Different Market Reactions
Sui's data showed caution ahead of the unlock. On August 24, the daily net flow was negative $15.64 million. Meanwhile, Optimism demonstrates signs of accumulation, signaling a potential price increase. Sui's price needs to cross key levels to regain bullish momentum.
Key Price Levels for Solana
Solana benefits from its linear unlocks, which occur gradually. Key support levels for Solana are $202 and $196, necessary to maintain a bullish trend. Movement below these levels could result in negative price implications.
In light of upcoming token unlocks, market participants are advised to monitor exchange behavior closely and respond to price changes in order to adapt appropriately to potential market fluctuations.
