Individual unlocking amounts are astonishing, large selling pressure is about to erupt
In this unlocking wave, several projects have remarkably high individual unlocking amounts, with numerous projects exceeding 5 million USD, such as SUI, JUP, OP, KMNO, HUMA, VENOM, SOPH, ZETA, ALT, SAHARA, REZ, etc. Once these unlocked tokens flow into the market, it will instantly disrupt the existing supply-demand balance.
Taking SUI as an example, as the native token of an emerging public chain, SUI has recently attracted significant investor attention due to the advancement of ecological projects. However, this large unlock is like a heavy bomb. The large number of unlocked tokens is very likely to trigger selling behavior among holders, as some early investors and team members may choose to sell their tokens in the market after unlocking for profit-taking or project funding needs. The market's absorption capacity is limited in the short term; a large influx of sell orders will place enormous downward pressure on SUI's price. If there is insufficient buying power in the market, prices may plummet significantly, causing ordinary investors' assets to shrink severely.
Similarly, JUP, as an important token of a decentralized trading platform, should not be underestimated. After the unlocking of JUP, the number of tradable tokens in the market has significantly increased, which will not only impact its own price but may also affect the overall stability of the decentralized trading market. In a tight market liquidity situation, the selling pressure from JUP's unlocking may trigger a chain reaction, leading to price declines in other related tokens, putting investors at risk of comprehensive losses.
Linear unlocking continues to exert pressure, market pressure follows closely
In addition to individual large unlocks, some projects are also adopting linear unlocking methods, with amounts equally astonishing, exceeding 1 million USD/day for projects including SOL, WLD, TIA, DOGE, TAO, AVAX, SUI, DOT, IP, MORPHO, ETHFI, JTO, ENS, etc. Although this linear unlocking does not release a large amount of selling pressure instantly like a one-time large unlock, it is like a blunt knife, continuously cutting into the market's absorption capacity.
SOL, as a representative of high-performance public chains, has seen rapid ecological development, attracting a large number of developers and users. However, the ongoing linear unlocking means that new SOL tokens are entering the market every day. As time goes on, the cumulative selling pressure gradually increases. For investors, this is a continuing psychological test. The continuous influx of sell orders will lead investors to gradually lower their price expectations for SOL. When market confidence is hit, more investors may join the selling ranks, forming a vicious cycle, causing SOL's price to remain in a downward channel for an extended period.
WLD, as a token of a popular metaverse project, originally had high market attention. However, the continuous supply increase brought by linear unlocking has increasingly highlighted the issue of supply-demand imbalance. Although the project party may be actively promoting the construction of the metaverse ecosystem, the selling pressure from unlocking makes it difficult for WLD's price to gain effective support. Investors often find it challenging to judge the price bottom in such situations, hesitating to enter the market for bottom-fishing, thereby further suppressing market liquidity and activity.
Beware of selling pressure, investors urgently need to hedge
Faced with such a large-scale token unlocking wave, the market's selling pressure is self-evident. In the short term, these unlocked tokens act like a flood rushing into the already volatile crypto market. "Big players" with sharp market insights and capital advantages may likely use this opportunity to successfully exit, shifting the risk to the market. Meanwhile, small investors, due to delayed information and limited analytical ability, often become victims in this crisis.
In past market experiences, whenever there is a large-scale token unlocking, market prices often fluctuate significantly. Many projects have seen their token prices halved or even lower after unlocking. For example, a project experienced a 70% price drop within a week after a large-scale unlock, resulting in many investors losing their entire investments. This time, with over 620 million USD in token unlocks, the potential impact may far exceed previous instances, and the uncertainty facing the market has increased dramatically.
For the vast majority of investors, the top priority is to take immediate action to avoid risks. Carefully examine your investment portfolio and remain highly vigilant regarding the tokens on the unlock list. If you hold relevant tokens, you should cautiously consider whether to sell them in a timely manner based on your risk tolerance to avoid asset losses. Meanwhile, closely monitor market dynamics and wait for the post-unlocking trend, when the market stabilizes, to seek new investment opportunities. In this crypto market full of risks and opportunities, only by staying vigilant can you protect your assets in a perilous environment.
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