As a researcher with a background in cryptocurrencies, I find the current market situation intriguing. The recent bullish momentum in Bitcoin and the altcoin market is an encouraging sign after weeks of bearish price action. However, the sustainability of this recovery remains uncertain due to several factors, including the German government selling BTC and upcoming token unlocks.
In the world of cryptocurrencies, Bitcoin led the charge during the opening week of July with a strong rebound. After hitting a support level of $55,000, Bitcoin rallied by nearly 6.4%, reaching a new trading price of $58,600. This surge brought about a renewed sense of optimism in the altcoin market, resulting in a significant relief rally.
Despite the German government continuously selling Bitcoin and maintaining a stable supply in the market, the longevity of the current price recovery remains uncertain. With the uncertainty surrounding this recovery, the impending release of tokens could significantly influence the cryptocurrency market.
Cryptocurrency token unveiling occasions refer to pre-planned releases when once confined digital assets become accessible to investors, team members, and other relevant parties. This process introduces more circulating tokens into the market, potentially causing a decrease in an asset’s value due to increased supply, following the scarcity principle.
Optimism (OP)
As a researcher investigating Ethereum‘s scalability solutions, I would describe Optimism (OP) as follows: OP is a layer 2 scaling technology I’ve come across that aims to boost Ethereum’s transaction processing speed and cut down costs by handling transactions outside the main Ethereum blockchain.
Over the last 120 days, the OP coin has experienced a consistent decline in value. Its price dropped from $4.86 to a low of $1.22, resulting in a significant loss of approximately 75%. However, with the recent market upswing, the value of OP coins rebounded to $1.61, and the overall market capitalization surged to an impressive $1.8 billion.
For retail investors, it’s important to exercise caution during this market rally as the “Optimism coin” has a scheduled Cliff unlock on July 15th. According to Token Unlocks data, approximately 10 million Op tokens, equating to 0.89% of the current circulating supply, will be allocated to Retroactive Public Goods Funding.
During this occurrence, the Optimism token’s price may find it challenging to break through the resistance level of $1.86 and could lead to a potential reversal once again.
Worldcoin (WLD)
“Worldcoin (WLD) is an initiative that aims to create a universal, secure, and private identity and financial infrastructure using cryptocurrency technology.”
As a researcher studying the cryptocurrency market, I’ve observed that Worldcoin (WLD) underwent a significant price increase of 5.62% during the previous night. However, this growth was short-lived as the coin experienced an intraday pullback amounting to 1.13%. Consequently, its current price stands at $1.90. With a market capitalization of $517 million, Worldcoin faces challenges in preserving its position above the $2 mark. The daily chart illustrates a clear downward trend for this cryptocurrency.
The downward trendline for Worldcoin’s resistance, coupled with a larger market adjustment, has resulted in a substantial decrease in its value. At present, the price of Worldcoin (WLD) stands at an 84% reduction from its previous high of $11.70 reached back in March 2024.
As a researcher studying the Worldcoin project, I’d describe it this way: Currently, the Worldcoin network is undergoing a Linear Unlock of approximately 22.35 million coins, which represents around 8.23% of the present circulating supply. Looking ahead, Linear Unlocks are planned for 6.62 million WLD each day, starting on July 24th and continuing for a total of 540 days.
As an analyst, I would advise that a potential development could intensify the bearish trend, with significant support levels to keep an eye on at $1.40 and $0.97.
As a researcher studying market trends, I would note that there’s a possibility for price reversals to take place near the psychological resistance levels of $1.50 and $1.00.
Avalanche (AVAX)
Avalanche (AVAX), much like Ethereum, is a blockchain platform striving for competition, prioritizing speed, adaptability, and expansiveness. In line with the general market dynamics, the value of AVAX exhibits a significant downward adjustment at present.
As a researcher studying the financial markets, I’ve noticed that Avalanche’s trading price has dropped significantly, sitting at a 58% discount from its 52-week high of $65, which was reached in March 2024. This substantial decline could be an indication that Avalanche is gearing up for a trend reversal.
I’ve observed an impressive 6.78% surge in recovery over the past 48 hours, resulting in two consecutive bullish candles on the chart. Additionally, the appearance of a “morning star” pattern at the trendline adds credence to the upward trend in AVAX prices.
The solid resistance trendline might cause the downtrend to continue, with the price potentially reaching the constricted part of the falling wedge based on Token Unlocks data indicating a release of 700k AVAX tokens, equating to just over 0.18% of the current total supply.
On August 20th, there’s a planned event called a “cliff unlock” for Avalanche, during which approximately 9.54 million AVAX tokens, equivalent to around 2.42% of the current token circulation, will be distributed amongst four different parties.
With sustained selling, the potential support levels for the AVAX price are at $21.8 and $18.9.
Key Takeaway
The essential token unlock procedure plays a crucial role in regulating supply, encouraging lasting engagement, and preserving market equilibrium. Yet, with the current relief rally’s instability, assets such as Optimism (OP), Worldcoin (WLD), and Avalanche (AVAX) may experience prolonged declines due to imminent token unlock events.
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2024-07-10 15:28