The overall cryptocurrency market sentiment is currently dull, with most digital assets failing to make decisive movements in either direction. Indeed, the market has shown little reaction to the July personal consumption expenditures (PCE) data.
Notably, the July inflation data indicated that price growth remains on the path back to the Federal Reserve’s target of 2%. This factor could lend credence to the possibility of interest rate cuts in September.
Despite the potential for interest rate cuts, risky assets like cryptocurrencies have remained stagnant, with Bitcoin (BTC) continuing to consolidate below the $60,000 resistance level. While the current situation might offer an investment opportunity, Finbold has identified the following cryptocurrencies that investors should avoid trading in the coming week due to possible heightened volatility.
Immutable (IMX)
Immutable (IMX) has exhibited resilience recently, rising by almost 8% in the past month despite broader market volatility. However, an upcoming token unlock on September 6, 2024, will circulate 32.47 million IMX tokens.
This addition represents 2.06% of the token’s market cap, valued at approximately $47.23 million. While technical indicators for IMX have mainly been bullish, suggesting potential gains if it can break key resistance levels at $2, the increased supply could trigger a shift in sentiment and introduce new volatility.
IMX upcoming unlock. Source: Crypto Rank
Hashflow (HFT)
Hashflow (HFT) faces a similar situation, with a token unlock scheduled for September 7, 2024. This event will introduce 15.83 million HFT tokens into the market, accounting for 4.33% of its current market cap and valued at around $2.27 million.
The increased circulating supply could significantly impact the token’s price, especially if the prevailing market sentiment is bearish. Historically, tokens like HFT that face substantial unlocks often experience increased selling pressure, potentially exacerbating existing volatility. At press time, Hashflow was trading at $0.14 and had plunged over 23% in the last month.
HFT upcoming unlock. Source: Crypto Rank
Sui (SUI)
Sui (SUI) also has an upcoming token unlock on September 3, 2024. This will release 83.88 million SUI tokens into the market, accounting for 3.23% of its market cap and valued at approximately $67.97 million.
Introducing such many tokens into circulation could alter market dynamics, potentially leading to a price decrease due to higher supply. While Sui’s development progress has drawn interest from investors, the upcoming unlock event could disrupt its price stability in the short term. The increased supply is likely to heighten short-term volatility for SUI, which has already plunged by 20% in the past week. At the time of reporting, the token was trading at $0.81.
SUI upcoming unlock. Source: Crypto Rank
In summary, while the mentioned cryptocurrencies are mainly susceptible to overall market sentiment, the upcoming token unlocks are likely to add pressure, leading to depressed investor sentiment. However, it is essential to note that investing in cryptocurrencies requires thorough research.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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