CyberConnect’s (CYBER) price has been consolidating within an ascending parallel channel since October, reflecting the broader crypto market’s uptrend. However, a recent correction on January 8th tested the channel’s lower boundary, prompting closer scrutiny of potential future movements.
On January 14th, CyberConnect faces a significant event with the unlocking of 1.26 million CYBER tokens worth $9.65 million, representing about 8.5% of the asset’s supply. This unlock could potentially act as a bearish catalyst, though market reactions to such events can vary, with price increases sometimes observed post-unlock.
The unlocked tokens, allocated to the community treasury, ecosystem development, and public sale investors, could trigger profit-taking among investors, leading to selling pressure on CYBER’s price. However, the impact on price is uncertain, as token unlocks do not always lead to declines.
In the context of crypto markets, token unlocks are often seen as bearish events due to the increased selling pressure from additional tokens entering circulation. For CYBER, the bearish case suggests a potential 10% decline to $7.12, with further downside risks towards the next support at $6.60. The Relative Strength Index (RSI) trend indicates a possible loss of momentum, which could reinforce the bearish outlook.
While the bearish potential is noted, a bullish perspective anticipates a break above the channel and surpassing the psychological level of $9. If bulls prevail, CYBER’s price could target the $9 mark and potentially reclaim its recent high of $9.69 seen on January 3rd. Investors are advised to stay vigilant, monitoring the token unlock event and subsequent price movements, as a drop below the $7.60 support level could signal increased selling pressure and a potential 10% drop, whereas a bullish trajectory could lead to surpassing the channel’s upper boundary and reaching key price milestones.