Altcoins News
By Sakamoto Nashi
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A recent token unlock by Sonic [S] has fueled renewed concerns in the cryptocurrency market, as $74.59 million worth of S tokens were released into circulation on July 5.
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The timing of the unlock couldn’t have been worse for S holders. The broader crypto market is already navigating a cautious period, and the sudden increase in available tokens…
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The selloff has already begun. Between July 3 and July 5, decentralized finance (DeFi) investors significantly reduced their exposure to S.
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Retail traders also joined the exit. Exchange netflow data from CoinGlass reveals that $427,000 worth of S tokens were moved from private wallets to centralized exchanges over…
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In the derivatives market, the sentiment is no better. Data from Coinalyze paints a stark picture of the imbalance between long and short positions in the perpetuals market.
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The ongoing bearish activity has brought back memories of Sonic’s previous unlock event in January. On January 4, nearly $1 billion worth of S tokens were released into the market.
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At the time of writing, the S token had formed a local high on June 25. While the current price action hasn’t yet confirmed a breakdown, analysts point to the $0.
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Investors are now closely monitoring whether the market can absorb the increased token supply without triggering further volatility.
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With no immediate signs of a demand surge and increasing signs of distribution, the path of least resistance for Sonic’s token may be downward, at least in the short term.
The Currency Analytics
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