Dogecoin to Face 100 Million DOGE Hit: End of Bull Run?

Nearly 100 million DOGE are scheduled to go on sale between July 28 and Aug. 4, putting Dogecoin on the cusp of another major token unlock. Such a significant unlock would raise concerns for many tokens, leading to price declines and investor panic. However, in the case of Dogecoin, this event has become commonplace and hardly ever causes the asset to lose its footing. Dogecoin’s distinct liquidity profile is the main cause.

Does it matter For Doge?

Since major exchanges have very deep liquidity and a 24-hour trading volume of over $700 million, a 95.5 million token unlock (worth about $22.9 million) hardly makes a difference. Even sizable inflows are absorbed with minimal slippage because DOGE is continuously among the most actively traded assets on the cryptocurrency market. 

Following a recent correction from its rally past $0.28, DOGE is currently painting signs of stabilization by hovering around the $0.24 level on the price chart. A confluence of short-term moving averages, the $0.22 zone has recently seen a bounce, suggesting that bullish sentiment may still be present. 

DOGE’s market situation

The 50 EMA is forming technical support, and resistance is still at or near the $0.28 level, which DOGE was unable to break decisively earlier in July. Notably, these monthly unlocks are completely anticipated. In contrast to abrupt unlocks or vesting cliffs that surprise traders, DOGE’s unlock schedule is clear and predetermined.

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Its influence on market behavior is further mitigated by this predictability. Traders simply regard it as clockwork, a component of the asset’s monetary policy. The market easily absorbs the dramatic headline of 100 million new DOGE despite the fact that it may sound dramatic. 

This unlock is unlikely to cause Dogecoin to falter as long as liquidity is high and volatility is kept under control. Attention is still on the strength of the upcoming breakout attempt and the price action around $0.25.