This week, the altcoin market braces for turbulence as a significant unlock of tokens worth over $250 million across 16 altcoins is imminent. Among the noteworthy are Solana and Dogecoin, whose technical setups suggest potential vulnerability. Solana is poised to release $61.83 million in tokens, and Dogecoin follows with a $14.69 million unlock. These events could exacerbate selling pressures, already intense in the current fragile market condition, and further dent the valuations of these altcoins.
Can Dogecoin Hold Its Ground?
Currently, Dogecoin hovers at a critical support level of $0.145. Despite a minor short-term recovery, it remains under key resistance levels such as the 50, 100, and 200-day moving averages, pointing to a prevailing bearish trend. With its Relative Strength Index (RSI) placed at 31, the altcoin is in oversold territory, indicating a potential, albeit uncertain, technical rebound.
The impending release of 95.89 million DOGE tokens could critically impact Dogecoin’s balance. Unless substantial buying interest emerges, this additional supply might push the token’s value below its sensitive $0.145 support level, possibly dragging it down to $0.12. A swift price climb above $0.18 is essential to avert further devaluation scenarios.
Will Solana Weather the Supply Surge?
Solana faces a considerable challenge with a scheduled release of 465,770 SOL tokens valued at $61.83 million. This influx poses the risk of more pronounced price declines. Solana, currently trading near $134 and lagging below the 200-day EMA, struggles to uphold support around $130. An RSI in the 30s and feeble momentum heighten Solana’s price vulnerability.
If Solana cannot rally past the $150-155 range, accelerated selling pressure is likely, potentially dragging it to $120. Such a downturn would not just affect SOL but could also trigger broader negative market sentiment across altcoins.
Here are some critical points:
- Over $250 million in altcoin unlocks across 16 tokens.
- Dogecoin’s unlock event could see value dip below $0.145.
- Solana struggles below major support, risking a drop to $120.
- Additional unlocks affect altcoins like BLASK, ACX, and VENOM.
Amidst these developments, the altcoin market is likely to face heightened volatility. With both technical and market sentiment under pressure, investors must remain vigilant, monitoring support levels and broader market cues to navigate this challenging phase effectively.
