- Dogecoin is set to unlock nearly 100 million tokens this week, a move that could trigger short-term market volatility due to weakening price momentum and declining trading volume.
- This token release, alongside other major unlocks, may increase selling pressure and impact Dogecoin’s price and broader market sentiment.
Dogecoin (DOGE) will unlock nearly 100 million tokens between May 19 and May 26. This unlock adds about $21.9 million worth of DOGE into the market. Although this equals only 0.06% of its circulating supply, the timing makes it important for traders to watch.
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What Dogecoin Unlock Means for the Market
Dogecoin recently showed signs of a bullish breakout, pushing its price close to $0.25. However, DOGE failed to hold this momentum and retreated. It now struggles to break above the 200 EMA resistance line. The descending triangle pattern on its chart suggests a possible bearish continuation. Buyers will need strong volume to push prices up.
Potential Impact of the Token Unlock
The token unlock might either boost liquidity or trigger a short-term sell-off. Given the recent drop in trading volume, selling pressure seems more likely. Other cryptocurrencies also plan token unlocks this week. Near Protocol (NEAR) will add $8.24 million, Worldcoin (WLD) $43.18 million, and Sui (SUI) $12.89 million. Still, none of these have the same psychological effect as Dogecoin’s 100 million tokens.
What Traders Should Watch
The market shows signs of fatigue after the initial breakout. Weak volume means buyers may not support higher prices. If sellers dominate, DOGE’s price could fall, affecting similar mid-tier cryptocurrencies. Traders should closely monitor volume and price action during this period. A rise in volume could signal renewed buying interest. Otherwise, the price may continue downward.
Dogecoin’s upcoming unlock is a major short-term event despite its small percentage. Market liquidity and momentum will determine how prices react. Investors should stay alert to price and volume trends to manage risks effectively.
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