The cryptocurrency market has undergone a surprising transformation this week, moving from a bearish sentiment to a more optimistic outlook. This change coincides with weaker-than-expected nonfarm payrolls data released in April. This is a signal that could indicate positive macroeconomic conditions for riskier assets such as cryptocurrencies. But there is a potential storm cloud on the horizon for some specific cryptocurrencies. Because, according to some experts, the token unlocking operations planned for next week are preparing to create significant inflationary pressure for three projects: Heroes of Mavia (MAVIA), Galaxy (GAL coin) and Hashflow (HFT).
Why should we pay attention to MAVIA and other coins?
Expert Vinicius Barbosa announced some coins we should not trade next week, according to his analysis. He explained that he came to this conclusion due to unlocking activities. These planned unlocks 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, with a heavy focus on the projects mentioned above. This sudden increase in supply could have a detrimental effect on the price of these cryptocurrencies in the short term. Let’s take a closer look at the specific situations of each project…
First of all, MAVIA, which is leading the upcoming unlock with a staggering 55% share by market capitalization, faces the potential for huge price fluctuation. Tokens worth $30.79 million (6.328 million) are scheduled to be unlocked on May 6. This represents a significant portion (25 percent) of the current circulating supply. Notably, more than half of this unlocked amount stems from pre-sale vesting agreements and team allocations, potentially signaling profit-taking behavior.
Also pay attention to GAL coin and HFT
On the other hand, GAL, which is scheduled to unlock $19.20 million (5.17 million) worth of tokens this week, faces a 34% share of total unlocks and a potential 5.8% reduction in market cap. Similar to MAVIA, a large portion of these unlocked tokens are from team allocations and strategic sales, indicating potential selling pressure.
While smaller compared to others, Hashflow’s $4.20 million unlock on May 7 represents a significant inflow for the project. This unlocking process hints at the possibility that sales activity may increase, prioritizing early investors, ecosystem development, and team profits.
It is important to recognize that despite these tokens being unlocked, the price of these cryptocurrencies may still experience unexpected positive movements. With this, cryptokoin.com As we have reported, a sound risk management strategy requires caution when significant supply pressure is imminent. Investors and traders should carefully consider the potential impact of these unlocks before making any decisions regarding MAVIA, GAL and HFT next week.
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