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Cryptocurrency Market Expects $3 Billion in Tokens Unlocked in July; Worldcoin (WLD) Price Analysis.
As July approaches, the cryptocurrency market is preparing for a substantial influx of unlock tokens, with an estimated $3 billion in digital assets scheduled for release. Token unlocks are designed to gradually distribute coins, a strategy aimed at preventing early investors and team members from dumping large amounts in one go, which could destabilize the market. Market experts suggest that such breakouts could increase selling pressure, potentially impacting the broader digital asset landscape.
CryptoRank, a respected crypto research and analytics platform, has identified the top ten token unlocking events scheduled for July. These events will collectively release over $3 billion in digital assets, with over $100 million set to be available in the first week of the month alone.
A significant unlocking event involves AltLayer, a project that facilitates the implementation of Ethereal roll-up. On July 25, AltLayer will release approximately 684 million tokens, worth approximately $119 million.
According to data from Token Unlocks, these tokens make up 22% of AltLayer’s market capitalization. The distribution will be targeted to various stakeholders, including the project team, investors, consultants and the broader AltLayer community, supporting the protocol development and treasury ecosystem.
Worldcoin’s extensive token unlocking program
The significant token unlocks expected in July will affect various blockchain platforms and networks. Aptos, a Layer-1 blockchain platform, and Arbitrum, a Layer-2 Ethereum network, will continue their routine monthly token distributions, releasing a combined total of $150 million worth of tokens to their teams, advisors, and investors.
Another notable event is the planned unlocking of the token by Worldcoin, known for its proof-of-personhood initiative. Starting July 24, Worldcoin will begin releasing 6.62 million WLD tokens per day over 730 days. These tokens, valued at approximately $18 million per day, are intended for community members, the initial development team, and investors.
Additionally, July will see notable token releases from other key projects in the cryptocurrency space. Uniswap is set to distribute 8.33 million UNI tokens, worth $77.88 million, on July 16. Next, Ronin plans to release 35.71 million RON tokens worth $76.32 million starting July 27. Other projects scheduled to unlock tokens include SUI, ImmutableX (IMX), SEI, Starknet (STRK), and Ethereum Name Service (ENS). These unlocks are critical events for the respective token markets, potentially affecting their valuation and market dynamics.
Technical Analysis of Worldcoin (WLD).
In recent trading sessions, Worldcoin (WLD) has shown a sharp downtrend against US Tether (USDT) on Binance, as evidenced by the 30-minute price chart analysis. Data from this chart provides insight into the prevailing market sentiment and potential future trends for the cryptocurrency.
The exponential moving average (EMA), represented in blue and currently positioned at around $2.436, has recently seen WLD price drop below it. This drop below the EMA line suggests a possible short-term bearish trend and indicates that WLD is facing significant selling pressure, struggling to break above this dynamic resistance level.
Furthermore, the Relative Strength Index (RSI) is recorded at 46.22, which puts it in a neutral to slightly bearish range. Being below the midline of 50, but without extending into the oversold area (below 30), the RSI suggests there could be further downside movement or potential stabilization if buying interest increases.
Currently, Worldcoin’s price trajectory further underscores the bearish sentiment, with a recent price near $2,457. The continued failure to break above the EMA despite multiple attempts further confirms its role as a critical barrier to price increases, reinforcing the overall downtrend observed in the market.
Support and resistance zones
In the current trading landscape, WLD has established a primary support level at around $2.42. This price point acts as a floor, historically preventing further declines, as evidenced by multiple instances where the price has bounced after reaching or approaching this level. A break below this level could suggest a shift into a more pronounced downtrend, necessitating a review of trading strategies.
If the price breaks below this primary support, the next critical level to watch is near $2.36. This support level has previously seen a bit of consolidation, indicating sustained buying interest that could act as a buffer against further declines.
In terms of resistance levels, immediate resistance is identified at around $2.44, slightly above the current trading price. This resistance closely aligns with the exponential moving average (EMA) and is characterized by recent failures of the price to sustain upward movements. A breakout of this EMA is seen as essential to reversing the prevailing bearish sentiment.
A more formidable resistance lies around $2.48, a level confirmed by observing peaks that have consistently acted as a significant barrier. Repeated struggles to break above this price level highlight strong selling pressure. A successful breakout above this level could signal a potential bullish reversal or at least indicate an increase in bullish momentum.