Dogecoin is preparing to release 96.52 million tokens into circulation between May 19 and May 26. Though this represents just 0.06% of its total supply, the timing and market sentiment have raised concerns about potential price instability.
The unlock, valued at around $21.9 million, is attracting attention due to DOGE’s recent failed breakout attempt. Although Dogecoin arrived at $0.25, it could not maintain its momentum and later fell beneath the 200-day EMA. Because of this reversal, bullish faith is being weakened.
The chart suggests a descending triangle is now in place, which many consider a signal for continued selling. If investors do not buy enough, the appearance of nearly 100 million new tokens may lead to a sell-off. Before the event, market observers were worried that the rise in supply could cause oil prices to fall further.
Source: Tradingview
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Other Token Unlocks Add to Mounting Market Tensions
According to Tokenomist and WuBlockchain, other major unlocks will occur within the same week. These include $43.18 million worth of Worldcoin, $12.89 million from Sui, and $8.24 million in Near Protocol tokens. While these are larger in proportion than Dogecoin’s, they lack the same symbolic and psychological impact in the crypto space.
Any fluctuations in the supply of Dogecoin create a big reaction from the public. The concern is greater since trading volume has recently become lower after the initial surge in the market. If there is not enough motivation, the amount of unlocked tokens could outnumber the demand.
Aside from DOGE, other tasks this week could affect the market’s response. More available cryptocurrencies and less enthusiasm for them are leading to higher volatility. Traders are advised to remain careful, as the market liquidity is declining.
Even though Dogecoin’s newest token release won’t be significant, it’s expected to impact the market significantly. When activity decreases and the belief that the price will rise drops, a substantial increase in supply may set off price instability. Along with several unlocks coming together, we may see the crypto market swing further than people expect.
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