As July approaches, the cryptocurrency market is preparing for a significant influx of token unlocks. An estimated $3 billion worth of digital assets are scheduled for release. Token unlocks are designed to distribute coins gradually. This strategy is intended to prevent early investors and team members from dumping large amounts at once, which could destabilize the market. Market experts suggest that such unlocks could increase selling pressure and potentially impact the entire digital asset landscape.
CryptoRank, a respected crypto research and analytics platform, has identified the top 10 token release events for July. These events will collectively release over $3 billion worth of digital assets, with more than $100 million available in the first week of the month alone.
A significant unlocking event involves AltLayer, a project that facilitates the deployment of Ethereum rollups. On July 25, AltLayer will release approximately 684 million tokens valued at around $119 million.
According to Token Unlocks data, these tokens represent 22% of AltLayer’s market capitalization. The distribution is targeted at various stakeholders, including the project team, investors, advisors, and the wider AltLayer community, and supports protocol development and the treasury ecosystem.
Comprehensive timeline for Worldcoin token release
The significant token releases scheduled for July will affect 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 total of $150 million worth of tokens to their teams, advisors, and investors.
Another important event is the planned token release by Worldcoin, known for its proof of identity initiative. Starting July 24, Worldcoin will release 6.62 million WLD tokens daily for 730 days. These tokens, worth about $18 million daily, are for community members, the initial development team, and investors.
In addition, July will see notable token releases from other major projects in the crypto space. Uniswap will distribute 8.33 million UNI tokens worth $77.88 million on July 16. After that, Ronin plans to issue 35.71 million RON tokens worth $76.32 million starting July 27. Other projects that have token releases planned include SUI, ImmutableX (IMX), SEI, Starknet (STRK), and Ethereum Name Service (ENS). These releases are critical events for the respective token markets and potentially affect their valuation and market dynamics.
Technical Analysis of Worldcoin (WLD)
Over the past few trading sessions, Worldcoin (WLD) has shown a significant downtrend against US-based Tether (USDT) on Binance, as shown by analyzing the 30-minute price chart. The data extracted from this chart offers insight into the prevailing market sentiment and possible future trends for the cryptocurrency.
The Exponential Moving Average (EMA), shown in blue and currently at around $2.436, has recently seen the price of WLD drop below it. This drop below the EMA line indicates a possible short-term downtrend and shows that WLD is facing significant selling pressure and is struggling to overcome this dynamic resistance level.
Additionally, the Relative Strength Index (RSI) is at 46.22, which places it in a neutral to slightly bearish zone. Since the RSI is below the midline of 50 but does not reach the oversold zone (below 30), it suggests that there could be further downward movement or a possible stabilization if buying interest increases.
Currently, Worldcoin’s price action further underlines the bearish sentiment, with the current price level hovering around $2.457. The continued inability to break above the EMA despite several attempts further confirms its role as a critical barrier to price gains and reinforces the overall downtrend observed in the market.
Support and resistance zones
In the current trading landscape, WLD has established a primary support level at around $2.42. This price point acts as a floor and historically prevents further declines, as evidenced by several instances where the price rebounded after reaching or approaching this level. A break below this level could indicate a shift towards a more pronounced bearish trend, necessitating a revisit of trading strategies.
If the price breaks below this primary support, the next critical level to watch is $2.36. This support level has previously seen minor consolidation, suggesting continued buying interest that could act as a buffer against further declines.
As for resistance levels, the immediate resistance lies at around $2.44, slightly above the current trading price. This resistance closely corresponds to the Exponential Moving Average (EMA) and is marked by the price’s recent failures to sustain its uptrends. Breaking above this EMA is considered crucial to reverse the prevailing bearish sentiment.
More formidable resistance lies around $2.48, a level that has been confirmed by observing spikes that have consistently acted as a significant barrier. The repeated struggles to break above this price level indicate strong selling pressure. A successful breakout above this mark could signal a potential bullish reversal or at least indicate an increase in upside momentum.
