The altcoin market is preparing for a significant event this week with token unlocks exceeding $250 million. These developments may significantly affect the price levels of various altcoins.
The Dogecoin Element
Dogecoin is currently positioned at a critical support level of $0.145. Although there has been a slight recovery, the price remains below the 50, 100, and 200-day exponential moving averages, indicating a prevailing downward trend. The Relative Strength Index (RSI) is signaling a level of 31, suggesting oversold conditions and the potential for technical recovery.
The impending unlock of 95.89 million DOGE tokens can be seen as a decisive factor for Dogecoin’s fragile equilibrium. Without strong buying interest, this additional supply could push the price below the $0.145 support level.
Pressure on Solana
Solana is facing an even larger token unlocking event, with 465,770 SOL tokens valued at $61.83 million set to be released. This increase in supply poses a risk of further price declines for SOL. Currently trading around $134 and below the 200-day EMA, Solana struggles to maintain support in the $130 region. With the RSI in the 30s and overall momentum weak, the altcoin appears particularly vulnerable.
If the $61 million influx enters the market and SOL loses its current support, accelerated selling may ensue. Technical analysis suggests that if SOL fails to rise strongly above the $150-155 range, it could drop to as low as $120.
Unlocks for Other Cryptos
Throughout the week, significant token unlocks are also anticipated for other cryptocurrencies such as BLASK, ACX, VENOM, SOON, ALT, WLD, TAO, TIA, AVAX, SUI, MORPHO, ETFI, DOT, IP, and JTO. These events may further impact the overall altcoin market.
The mass token unlocks this month may create uncertainty and pressure on an already unstable altcoin market. Investors should closely monitor events and price fluctuations.
