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Token Unlocks: Sell Signals or Trading Opportunities?
- Token unlocks are part of each crypto project's journey and they tend to influence a token price negatively.
- Token unlocks can be found on various platforms like Messari, DeFiLlama, Token Unlocks, etc.
- A messari report on token unlocks suggests that the majority of the unlocking events were less than 2.5% of the circulating supply which usually hurt an asset's price.
- Market sentiment, new product launches and shift in narratives are some factors that can influence the price of a crypto asset during a token unlock event.
- Identifiable patterns can be observed in token unlock events. For instance, an unlock of at least 5% of the circulating supply tends to have a notable impact on an asset’s price development.
- Selling tokens before an unlock event and buying them back at a lower price after the unlock is an often-used tactic by traders.
- Expected large unlocks can have an unforeseen market reaction so predicting the best course of action before a token unlock event can be tough.
- Altcoins without monthly unlocks tend to perform better over the long term than tokens with big monthly unlocks.
- Token unlocks are a part of crypto sector and they can affect the price of crypto assets. However, it's hard to predict the best course of action before a token unlock event.
- The information discussed by Altcoin Buzz is not financial advice.
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