Introduction
Token unlock events are when a certain amount of tokens that were previously locked become available for trading or distribution. These events can have a significant impact on the price and liquidity of the tokens involved, depending on the percentage of the supply that is unlocked and the market sentiment. In this article, we will look at three upcoming token unlock events for ApeCoin (APE), 1inch Network (1INCH) and Immutable X (IMX), and how they could affect their prices.
ApeCoin (APE)
ApeCoin is a decentralized platform for creating and trading NFTs, especially those related to memes and pop culture. APE is the native token of the platform, which is used for governance, staking and rewards. According to its tokenomics, APE has a total supply of 1 billion tokens, of which 40% are locked in various contracts for different purposes. The next scheduled token unlock for APE is on May 17, when 15.6 million APE tokens, or 1.6% of the total supply, will be released. This unlock event is part of a monthly schedule that will last until March 2024.
The unlock event could have a negative effect on APE price, as it will increase the circulating supply and potentially create selling pressure from the holders who receive the unlocked tokens. APE is currently trading at $3.39, after gaining 2.5% overnight. However, this could be a case of buy-the-rumor-sell-the-news, as some traders may anticipate the unlock event and sell their tokens before it happens. APE has been in a downtrend since August 2022, and is facing resistance from the 10-day, 50-day and 200-day exponential moving averages (EMAs). If APE fails to break above these levels, it could drop to the support zone around $2.87-$2.62.
1inch Network (1INCH)
1inch Network is a decentralized exchange aggregator that connects users with the best prices and liquidity across multiple DEXes. 1INCH is the governance and utility token of the network, which is used for staking, voting and paying fees. According to its tokenomics, 1INCH has a total supply of 1.5 billion tokens, of which 30% are locked in various contracts for different purposes. The next scheduled token unlock for 1INCH is on May 18, when 21,429 1INCH tokens, or 0.001% of the total supply, will be released. This unlock event is part of a quarterly schedule that will last until December 2024.
The unlock event is unlikely to have a significant effect on 1INCH price, as it will barely increase the circulating supply and create minimal selling pressure from the holders who receive the unlocked tokens. 1INCH is currently trading at $4.19, after losing 7.2% overnight. However, this could be a temporary correction after a strong rally that saw 1INCH surge from $2.07 to $4.51 in less than a week. 1INCH has been in an uptrend since September 2022, and is finding support from the 10-day and 50-day EMAs. If 1INCH bounces back from these levels, it could target the resistance zone around $4.80-$5.00.
Immutable X (IMX)
Immutable X is a layer-2 scaling solution for Ethereum that enables zero-gas NFT transactions and trading. IMX is the native token of the platform, which is used for governance, staking and rewards. According to its tokenomics, IMX has a total supply of 2 billion tokens, of which 90% are locked in various contracts for different purposes. The next scheduled token unlock for IMX is on May 20, when 18 million IMX tokens, or 0.9% of the total supply, will be released. This unlock event is part of a monthly schedule that will last until April 2024. The unlock event could have a slight negative effect on IMX price, as it will increase the circulating supply and potentially create some selling pressure from the holders who receive the unlocked tokens.
