Sei Token Unlock Causes Price Drop
Sei (SEI), a Layer-1 blockchain token, dropped over 5% to $0.3135 on Monday. This followed a token unlock event releasing 95.15 million SEI tokens, worth about $30 million. This unlock equals 1.55% of Sei’s $1.98 billion market cap.
So far, Sei has released 72.4% of its total supply, or 7.24 billion SEI tokens. About 2.76 billion SEI tokens remain locked. After the unlock, SEI’s price fell from an intraday high of $0.3382 to $0.3135.
Technical indicators show weakening momentum. The Relative Strength Index (RSI) dropped from 62 to 50, suggesting less buying pressure. If the RSI falls below 50, the price may continue to decline.
Key support levels to watch are the 50-day Exponential Moving Average (EMA) at $0.3064 and the 200-day EMA at $0.2883. These could help slow or stop further price drops.
Starknet Token Unlock Increases Market Supply
Starknet (STRK), a Layer-2 protocol on Ethereum, released 127.6 million tokens worth $16.8 million. This equals 3.13% of Starknet’s $537 million market cap. So far, only 22.62% of STRK’s total supply is unlocked.
The token unlock caused price swings between $0.1295 and $0.1453. STRK currently trades above its 50-day EMA at $0.1303 but faces resistance near the 100-day EMA at $0.1360.
Starknet’s price is forming a symmetrical triangle pattern. A drop below the triangle’s ascending trendline could lead to a 44% fall to $0.0683. Conversely, a breakout above the descending trendline could push the price up 44% to $0.2061.
Why Token Unlocks Matter
- Token unlocks increase the circulating supply of a cryptocurrency.
- They help projects fund development and reward stakeholders.
- Unlock events can cause price volatility due to supply changes.
