This month, a number of altcoins, including Algorand and Avalanche, will release a significant amount of coins. This development, which is very important in terms of price action, awaits these 3 metaverse coins.
Metaverse coin projects that will unlock in May
One of the largest NFT tokens, ApeCoin, is preparing for the token unlock scheduled for May 17. 15.6 million APE, or 1.6% of its supply, will be released on this date. Roughly $52.7 million will be released on this date.
APE investors earned 2.5% the day before the token unlock date. Apecoin is currently trading at $3.42. If the price continues to rise, the token unlock event could be selling news for ApeCoin investors.
1inch (1INCH)
1inch’s token unlock date is Thursday, May 18. Less than 1% (0.001%) of the 1INCH supply will be freed on this date. Unlocking is not expected to have a negative impact on price as it only accounts for less than 1% of its supply.
ImmutableX (IMX)
Finally, 18 million ImmutableX worth $13.6 million is releasing on May 20. In this case, about 1% of the supply or 0.904% of IMX is prepared to unlock. Web3 coin is currently trading at $0.7375 after losing 4.2% last week.
In terms of price, no negative impact on price is expected as only less than 1% of the total supply will be released. Still, the amount of tokens that will be released is close to this key threshold that often hits prices.
What to expect from ApeCoin price?
ApeCoin price continues its downtrend that started in August 2022. The NFT token is currently trading below the two long-term Exponential Moving Averages (EMAs), the 50-day and 200-day at $3,896 and $4,679. The price is also struggling with the $3,402 resistance at the 10-day EMA.
In case of a drop after the token unlock, APE price will rely on $2,874, which has been a key support level since August 2022. The downside target is $2,628, the November 2022 low.
As Kriptokoin.com, we have included the biggest token unlock events of May in this article. In the last part, let’s take a look at the change in altcoin prices after previous events.
Does token unlock always have a dump effect on price?
On January 25, dYdX (DYDX) had to unlock massive tokens and increase its current supply of 156 million tokens by around 88% in a week. Its price dropped 16% two days before the date. However, there was a 50% return on the price when the team postponed the unlocks to two different days to ease the selling pressure.
In another example, Ronin (RON) unlocked 22.19 million RON tokens on January 27, 2023. After that, its price dropped by around 5%.
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