Sentiment in the cryptocurrency market turned from bearish to bullish after Fed Chairman Jerome Powell’s dovish speech. Buying pressure increased for most tokens. However, according to crypto analyst Vinicius Barbosa, three tokens could suffer from the upcoming sell-off this week.
The first warning light: XRP’s upcoming $120 million sell-off!
The first and most notable upcoming sell-off comes from Ripple regarding the XRP Ledger (XRP). The company typically moves more than 200 million XRP from its treasury account every month. It also sells most of these tokens. In this regard, Ripple has moved 1.826 billion XRP in possible sales year-to-date. At the time of writing, 124 million XRP worth about 200 million dollars are still sitting in ‘Ripple (1)’. On-chain data shows this for the cryptocurrency.
The warning lights are on for Optimism (OP) too!
Secondly, Optimism (OP) will perform an incoming unlocking activity on August 31. Therefore, it stands out among the cryptocurrencies to avoid trading this week. Optimism will release 31.34 million OPs worth $50.46 million for “Core Participants” and “Investors”. According to the latest data from TokenUnlocksApp, this activity will increase Optimism’s circulating supply by 2.6%. For the project alone, this will represent 67% of the $74.81 million worth of token unlocks expected for the next seven days.
Another cryptocurrency with a warning: Yield Guild Games (YGG)
To summarize the week’s unlocks, Yield Guild Games (YGG) will unlock 14.08 million YGGs that are expected to be partially sold on the market by the Community, Founders, Investors and Treasury. Interestingly, the tokens YGG is releasing are equal to $6.82 million at current prices. However, it still represents 3.7% of the token’s circulating supply. Therefore, although low compared to other cryptocurrency sales, this event has the potential to impact the Web3 game project from August 27th.
Investors should properly study and understand tokenomics before investing capital in cryptocurrency projects to avoid being surprised by a sell-off. However, it is possible that there is enough demand for the token to influence the situation. In this case, it is also possible that an unlock or impending supply pressure will not affect the price.
The views and predictions in the article are those of the analyst and are not investment advice. As Kriptokoin.com, we strongly recommend that you do your own research before investing.
Follow us on Twitter, Facebook and Instagram, and join our Telegram and YouTube channelto stay up to date with breaking news !
