February 2024 witnessed far more token unlocks than January, with everything from hundreds of millions of dollars worth of tokens like Optimism to Apecoin to Avalanche getting released.
Naturally, token unlocks put downward pressure on a cryptocurrency's price, and there might be reason to worry about dYdX and Optimism this week.
Here's how more than $200 million in these cryptocurrencies is set to be released this week, and what you should know about their possible price actions.
According to data from Token Unlocks, the unlocked supply of dYdX is set to increase by a whopping 33.33 million tokens by Friday this week, as indicated by the shot below:
This 33.33 million $dYdX unlock is set to amount to 11.08% of the token's total supply, and is set to increase the amount of unlocked tokens from about 41% to around 52%.
Three parties will receive the soon-to-be-unlocked tokens. Out of the total unlocked tokens, 18.48 million $DYDX—or more than half—will be distributed to investors.
Moreover, according to the TokenUnlocks dashboard and Messari, the team has been allotted 10.18 million tokens, while the remaining 4.66 million are designated for future employees.
According to data from CoinMarketCap, DyDx is performing extraordinarily in the charts, with a 4% price increase over the last day.
Moreover, in the past week, the cryptocurrency has gained around 16%, indicating a great deal of investor interest in the project.
According to the charts, DyDx is attempting a break above $3.55 and could be poised to travel further upwards to around $4.36, as long as the bears don't pull prices below this $3.55 mark.
If things continue as smoothly, we are bound to see DyDx rally by another 25% to the $4.36 high from November 2023.
The upcoming Optimism unlock is set to happen on Thursday, a day before dydx.
This token unlock is set to release 26.49 million $OP, which is about 2.77% of the cryptocurrency's total supply, and is worth approximately $102 million.
The Optimism unlock is set to bring the total amount of unlocked OP tokens from 21% to around 23%.
Keep in mind that the last token unlock happened on 30 January, releasing $75 million $OP into the market and causing a -14% decline from $3.296 to $2.87.
According to data from CoinMarketCap, Optimism is also doing pretty well in terms of price.
The cryptocurrency is up by around 4% over the last day but is under some serious bearish headwinds on the weekly and monthly timeframes.
As shown in the chart above, Optimism is already facing some kind of trouble with the $4.12 resistance and has been rejected yet again from this price level.
If the bulls are unable to initiate this breakout above $4.12 resistance before the upcoming $100 million flood, Optimism might be at risk of a decline to the $3.3 support or even lower.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.