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.
Credit: Source link