July\'s $3B Token Unlocks: A Stress Test for the Crypto Market

As July approaches, the cryptocurrency market is preparing for a substantial influx of token unlocks, with an estimated $3 billion worth of digital assets scheduled for release.

As the month of July approaches, the cryptocurrency market is preparing for a substantial influx of token unlocks, with an estimated $3 billion worth of digital assets scheduled for release. These unlocks are designed to gradually distribute coins, a strategy intended to prevent early investors and team members from offloading large quantities at once, which could destabilize the market. However, experts in the market suggest that such unlocks might heighten selling pressure, potentially impacting the broader digital asset landscape.

CryptoRank, a well-regarded crypto research and analytics platform, has identified the top ten token unlock events scheduled for July. These events collectively will release over $3 billion in digital assets, with more than $100 million becoming available in just the first week of the month.

One significant unlock event involves AltLayer, a project that facilitates the deployment of Ethereum roll-ups. On July 25, AltLayer is set to release approximately 684 million tokens, valued at around $119 million.

According to Token Unlocks data, these tokens constitute 22% of AltLayer’s market capitalization. The distribution will target various stakeholders, including the project’s team, investors, advisers, and the broader AltLayer community, supporting protocol development and the treasury ecosystem.

Worldcoin’s Extensive Token Unlock Schedule

The significant token unlocks that are set for July will be affecting various blockchain platforms and networks. Aptos, a Layer-1 blockchain platform, and Arbitrum, an Ethereum Layer-2 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 major event is the planned token unlock by Worldcoin, known for its proof-of-personhood initiative. Starting July 24, Worldcoin will begin releasing 6.62 million WLD tokens daily over a span of 730 days. These tokens, valued at approximately $18 million daily, are designated for community members, the initial development team, and investors.

Additionally, July will see notable token releases from other key projects in the crypto space. Uniswap is set to distribute 8.33 million UNI tokens, valued at $77.88 million, on July 16. Following this, Ronin plans to release 35.71 million RON tokens worth $76.32 million starting July 27. Other projects scheduled for token unlocks include SUI, ImmutableX (IMX), SEI, Starknet (STRK), and Ethereum Name Service (ENS).

These unlocks are critical events for the respective tokens’ markets, potentially influencing their valuation and market dynamics.

Worldcoin (WLD) Technical Analysis

In recent trading sessions, Worldcoin (WLD) has shown a marked downtrend against the US Tether (USDT) on Binance, as evidenced by analysis of the 30-minute price chart. The data extracted from this chart offers 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 approximately $2.436, has recently seen the price of WLD fall below it. This descent below the EMA line suggests a possible short-term bearish trend and indicates that WLD is facing significant selling pressure, struggling to surpass this dynamic resistance level.

Moreover, the Relative Strength Index (RSI) is recorded at 46.22, which places it in a neutral to slightly bearish range. Being below the midline of 50, yet not extending into the oversold area (below 30), the RSI suggests that there might be further downward movement or potential stabilization if buying interest picks up.

Currently, Worldcoin’s price trajectory further underscores the bearish sentiment, with a recent price point near $2.457. The consistent inability to break above the EMA, despite multiple attempts, further confirms its role as a critical barrier to price gains, 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 approximately $2.42. This price point acts as a floor, historically preventing further declines, as evidenced by multiple instances where the price has rebounded upon reaching or approaching this level. A break below this level could suggest a shift towards a more pronounced bearish trend, necessitating a revision of trading strategies.

If the price drops beneath this primary support, the next critical level to monitor is near $2.36. This support level has previously seen minor consolidation, indicating a sustained buying interest that might serve as a buffer against further drops.

Regarding resistance levels, the immediate resistance is identified at roughly $2.44, slightly above the current trading price. This resistance aligns closely with the Exponential Moving Average (EMA) and is characterized by recent

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