thecoinrepublic.com
Cardano (ADA) is under intense pressure amid the anticipation of a token unlock in the next seven days. According to Token Unlocks, many altcoins, including Cardano, will undergo token unlocks this week. This unlock will feature either a single large-amount unlocking or a linear large-amount unlocking.
Noteworthy, the total unlocking value for these assets exceeds $498 million for the week.
Cardano And the Total Unlock Figure
Token Unlocks listed ADA as one of the largest token unlocking the industry will see this week.
Based on the listing, 18.53 million ADA will enter the market overall. The price of ADA was trading for $0.3543, corresponding to a 0.43% increase in the last 24 hours. At this rate, the stash billed for unlocking is worth approximately $6.56 million.
The total Cardano slated for unlock represents 0.05% of its total circulating supply. This is the smallest unlock listed by Token Unlocks. Arbitrum (ARB) leads the tokens for single large-amount unlocking in terms of volume.
A total of 96 million ARB, valued at around $51.04 million, are up for unlocking. Other tokens in the category are Starknet (STRK) and EigenLayer (EIGEN), at 64 million and 11.22 million, respectively.
As part of the ongoing “linear” plan, in which tokens are emitted and absorbed by the market, Solana will see $80 million worth unlocked.
Impact of Token Unlock on ADA Price
In the meantime, Cardano is displaying a positive sentiment. With such unlock actions, the asset’s supply increases, even with a phased release. Historically, a notable price change (downward pressure) might follow the unlock on average for two weeks, per the 2023 research conducted by TheTie.
Also, investors or traders’ anticipation of token receivers selling their newly unlocked tokens could trigger a sell-off. Consequently, this may reduce the token price before or as the tokens are unlocked.
However, the price could remain stable or increase due to a stronger positive sentiment linked to the unlock. This may stem from any perception that the token unlock is a sign of project progress.
Also, the positive sentiment could come from knowing that the tokens are meant for staking governance. This realization may allay fears of immediate sell-off, thus preserving the underlying asset.
Cardano Could Bycott a Price Fall
A few ecosystem trends may help Cardano avoid a token unlock-induced selloff
In Cardano’s case, a few events and upgrades could bring about a rally. Recently, popular smart contract developer Phil DiSarro expressed his optimism about ADA. He highlighted that the coin is further positioned for growth. Its secure and powerful ecosystem has gained numerous integrations with multiple projects.
Such partnerships push positive traction toward the ADA crypto. Crypto Capital Ventures’ founder, Dan Gambardello, also predicted an end-of-October price estimate of $0.05 for ADA, which is about 25% of its current trading value. The ADA supporter added weight to his bullish forecast by placing 1,000 ADA wagers for the community.
Significantly, these predictions are bullish and negate fears of a selloff for ADA. While the community is confident this token unlock will fade, price correction is likely before future breakout.