-
Major token unblockings add liquidity pressure, but short-term momentum remains bullish
-
Arbitrum and Sei maintain gains despite large token releases
-
Smaller Starknet unlocks and io.net trigger sharp intraday price reactions
This week, new tokens worth over $120 million from projects such as Arbitrum, Aptos and Sei hit the market. In a surprising display of strength, prices of affected altcoins are mostly shrugging the new supply off and rallying higher.
Arbitrum (ARB), Shrugging off a $38 Million Unlock
Arbitrum unlocked 38.63 million tokens, which represents 1.80% of the circulating supply. ARB’s price rose to $0.4207 on the day, up 3.23% despite the significant unlock.
Chart structure shows a bounce off a strong support at $0.4080 followed by higher highs. The current resistance is $0.4300-$0.4320. A breakout above this threshold could fuel further gains. This is especially true when volume is up by over 70%. A close below $0.4080, however, could signal a short term trend shift.
Both Aptos (APT), and Sei (SEI), also show strength
Aptos has unlocked $30.31m, which is just over 1%, but it surged almost 6% to $4.59. After opening at $4.34 it spiked up to $4.72 showing strong buyer demand.
Support is forming at $4.50. The next major resistance is $4.74. A sustained rally above this level could be triggered by a sustained momentum.
Token unlocks have been a constant in the market. Here’s what we found out during token unlocks that took place a few weeks ago.
Sei, the company that released tokens worth $17.07 millions, also remained stable at $0.3056 and showed modest gains.
The price action has been range bound but slightly upward tilted. A breakout above $0.315 could signal a continuation in the uptrend. However, a fall below $0300 could revert the outlook.
Starknet and io.net Follow the Trend
Starknet and io.net both had smaller unlocks of $16.05M each and $6.08M, but both tokens reacted strongly with a strong upward price movement.
STRK gained nearly 3%, reaching $0.1266, reclaiming the short-term support at $0.1255. If it breaks through $0.1290, then the price could reach $0.132 or even higher.
IO also unlocked $6.08m, and the token soared almost 4%, to $0.6067. This was a strong intraday rally, after the token had bottomed out at $0.572. A sustained move above $ 0.630 could trigger a move towards $0.65. If $0.600 is not held, it may cause a drop to the previous lows.
What else is on the move? It’s not just Arbitrum. Here’s CoinEdition’s list of altcoins you should be watching as Ethereum prices race to $4000.
This site is for entertainment only. Click here to read more
