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Token unlock schedules are threatening to shake up the market, making the coming week crucial for a number of significant cryptocurrencies. Between May 19 and May 26, Dogecoin, one of the most prominent cryptocurrencies, is scheduled to put 96.52 million tokens into circulation. Although only 0.06% of $DOGE's circulating supply is represented by this unlock, which has a value of about $21.9 million, the timing and market structure raise concerns about its possible impact.
Technically speaking, $DOGE recently displayed indications of a bullish breakout, with price momentum increasing toward the $0.25 mark. The asset, however, has since retreated after failing to sustain its upward trajectory and is having difficulty breaking through the black 200 EMA line. The chart's descending triangle could indicate a bearish continuation unless the asset is pushed upward by high volume.
The unlock this week may serve as a catalyst for either bullish expansion by providing liquidity or, more likely, a short-term sell-off because of market saturation. Other noteworthy unlocks this week include the release of $8.24 million in tokens by Near Protocol ($NEAR), $43.18 million by Worldcoin and $12.89 million by Sui.
Even though these represent larger proportions of the circulating supply than $DOGE, none of them have the same psychological impact as the roughly 100 million $DOGE that hits the market within a narrow range. The actual risk for traders and investors is the overall liquidity of the market.
These unlocks — $DOGE's in particular — are coming into a market that is beginning to show signs of weariness. Following the breakout, volume has been declining and since there has not been any follow-through, purchasing these unlocks may drive down prices generally.
Even though the $DOGE unlock may not seem like much in terms of percentage, its symbolic volume and timing during a period of diminishing momentum make it a significant short-term event. When coupled with other mid-tier unlocks such as WLD, TIA and $NEAR, the upcoming week may bring more volatility than most anticipate.