As the market transitioned from extreme greed to neutral, altcoins began to decline amid rising volatility and a lack of investor confidence. However, a supply spike may make things worse for some specific crypto, generating the need to sell before Monday. Why? Let us discuss that in this blog.
3 Altcoins to Sell As Exchange Supply Spikes
The ongoing week will witness billions worth of tokens entering the market with unlocks and transfers. This will create the worst scenario for a holder who is carrying those tokens already, as the supply spike usually generates massive selling pressure, resulting in crypto price crashes. This is due to the availability of millions of tokens in the market and rising liquidation, which drops the demand for tokens and the price itself.
Sentiment report claims many teams are unlocking and transferring billions of tokens for three altcoins, SPX, LDO, and WLD, which will cause their price to crash. Selling these tokens can save investors from liquidation.
1. SPX 6900 (SPX)
Around $3.6M worth of SPX6900 was unlocked on January 17 before being deposited into Bitvavo. These $3.6m tokens are equivalent to 0.32% of the total SPX supply, decreasing the worth of tokens. After adequately analyzing the price trajectory, investors may sell this token before Monday.
2. Lido DAO (LDO)
LDO is a prominent player in the Ethereum staking ecosystem and is often in demand among investors. Around $4.1M worth of these tokens were also unlocked recently, which is 0.23% of the total supply. These tokens are sent to the Coinbase Prime on January 16.
3. Worldcoin (WLD)
This week, a $4.3M WLD supply entered the market on January 16, resulting in a 4% price drop in the last 24 hours. A 0.21% of the total supply has been sent to the popular cryptocurrency exchange Binance. With increased liquidity and volatility, the Worldcoin price may decline further.
Additional altcoins, such as FDUSD, XCN, STRK, and many others, have unlocked more than $1M tokens this week.
Why Investors Are Selling This Crypto?
ONDO, the 37th biggest cryptocurrency in the market, will unlock 1.94 billion tokens, equivalent to $2.1M at the current market price. This unlock is set to happen on January 18, in which around 134% of its total supply will enter the market. This long-awaited unlock will occur through Cliff Unlock.
More importantly, it will be the biggest unlock since November 2024, so the impact may be higher. The 1.94 billion supply exceeds its daily trading volume, leading to investors selling this altcoin. As a result, ONDO trades at $1.23 and has been facing liquidation for weeks. This selling is eventually to recover any gains before the price drops once the liquidity drops the value.
Bottom Line
The crypto market’s unpredictability is known to every investor, where sudden changes often affect the asset’s prices. The supply spikes are one such factor that results in high liquidity and price drops. Because of this, three popular altcoins, LDO, SPX, and WLD, are at risk of a downtrend with their significant token unlocks. The investor must analyze their performance before trading with them before Monday.
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