- The cryptocurrency market experienced a surprising turnaround this week, shifting from a bearish sentiment to a more optimistic outlook. This change coincides with the weaker-than-expected non-farm payroll data announced in April, which could signal positive macroeconomic conditions for riskier assets like cryptocurrencies.
- However, a potential storm cloud looms on the horizon for some specific cryptocurrencies. According to some experts, the token unlocking operations planned for the next week are set to create significant inflationary pressure for three projects: Heroes of Mavia (MAVIA), Galaxy (GAL coin), and Hashflow (HFT).
- Analyst Vinicius Barbosa has identified certain coins that should be avoided in trading in the coming week due to these unlocking events. These planned unlocking operations will introduce a large influx of new tokens into circulation. According to TokenUnlocks.app, a total of $56.24 million worth of tokens will be unlocked in the next seven days, heavily concentrated in the aforementioned projects.
This article discusses the potential impact of upcoming token unlocking operations on the prices of MAVIA, GAL coin, and HFT, and why investors should proceed with caution.
Why should we pay attention to MAVIA and other coins?
MAVIA, which holds a surprising 55% share of the upcoming unlocking in terms of market value, faces a significant potential for price fluctuation. It is planned to unlock $30.79 million worth of tokens (6.328 million) on May 6. This represents a significant portion of the current circulating supply (25%). Notably, more than half of this unlocked amount originates from pre-sale vesting agreements and team allocations, potentially signaling profit-taking behavior.
Keep an eye on GAL coin and HFT
On the other hand, GAL, which plans to unlock $19.20 million worth of tokens (5.17 million) this week, faces a 34% share of total unlocking operations and a potential decrease of 5.8% in market value. Similar to MAVIA, a large portion of these unlocked tokens originate from team allocations and strategic sales, indicating potential selling pressure. Although smaller in comparison, Hashflow’s unlocking of $4.20 million on May 7 represents a significant inflow for the project. This unlocking operation prioritizes early investors, ecosystem development, and team profits, indicating the possibility of increased selling activity.
Conclusion
It’s important to acknowledge that despite these token unlockings, the prices of these cryptocurrencies could still experience unexpected positive movements. However, as we have reported at CoinOtag, a robust risk management strategy requires caution in situations where significant supply pressure is approaching. Investors and traders should carefully consider the potential impact of these unlocking operations before making any decisions regarding MAVIA, GAL, and HFT in the coming week.
