DYDX to unlock millions of tokens in December - Should traders be cautious?

Token Unlock and Price Action: What to Expect from DYDX

As a journalist, it’s important to keep a close eye on the potential impact of a token unlock on a cryptocurrency’s price action. Today, we’ll be diving into what to expect from DYDX’s upcoming token unlock, slated for December 1, 2023.

DYDX’s Last Token Unlock

During the last token unlock, DYDX’s price action did not turn bearish, even though it was down by more than 4% in the last 24 hours. Negative sentiment around it was dominant, and investors were cautious about what would unfold next.

All About DYDX’s Upcoming Token Unlock

According to Lookonchain’s latest tweet, DYDX will unlock 150 tokens, which are worth more than $500 million, on December 1, 2023. Out of which, $280.35 million will be available for investors. This significant increase in circulating supply could have a negative impact on the token’s price action.

What to Expect from DYDX

Given the large number of tokens being unlocked, the probability of DYDX’s price plummeting seems high. Market sentiment around the token also looked bearish, which was evident from its low weighted sentiment. DYDX was down by more than 4% in the last 24 hours and its market indicators look bearish.

As the token unlock date approaches, investors must remain cautious before making a decision on DYDX. With the MACD displaying a bearish crossover and both Money Flow Index (MFI) and Chaikin Money Flow (CMF) going down, the chances of a continued downtrend are high.

In Conclusion

While past data revealed that DYDX’s price was not greatly affected after the last token unlock, the negative sentiment around the token was a cause for concern. As DYDX prepares for its next token unlock, it’s important for investors to stay informed and exercise caution before making any decisions.

### News source: eng.ambcrypto.com

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