Dogecoin (DOGE) has seen almost 50% surge over the last five days, from $0.17 to 0.24. The first meme coin is witnessing over $1B in open interest, indicating massive interest and trading activity around DOGE. Now, as per the latest data, close to 100 million tokens are about to be unleashed into the market.
In one of the largest linear unlocks in recent weeks, 95.9 million tokens will be released as block rewards between May 12 and 19, as per the tokenomics data provider.
Token Unlocks Could Rock the Boat
While the number of tokens seems high, they would only comprise 0.06% of the tokens in circulation. However, considering the volatility that the token is witnessing and the upcoming resistance levels around $0.24, this unlock may test DOGE’s resilience further. Moreover, over the next 30 days, a total of 424 million DOGE tokens are set to be unlocked, stirring up the market that’s already on edge.
The market sentiments are mixed heading into the unlock window. Despite the correction on Sunday, analysts expect Dogecoin’s breakout and target $0.30. However, if DOGE falls below the critical support level of $0.22, it could signal a steep correction.
The meme coin has always been influenced by the slightest of market movements. Back in 2021, Dogecoin’s price reached an all-time high of $0.73, primarily driven by Elon Musk’s frequent tweets and endorsements, only to fall sharply within weeks.
Dogecoin In for Short-Term Volatility
While close to 100 million tokens are about to unlock, whales have scooped up over 100 million DOGE towards the end of April, offering a potential counterweight.
At the current price, the upcoming unlocks would be valued at around $22 million. This is a substantial token unlock and can potentially create short-term volatility and test its resistance level. However, DOGE could even experience an uptick during this window as the market gradually absorbs newly unlocked tokens.
While most popular cryptos like Bitcoin operate with fixed supplies, Dogecoin has an inflationary model, where the network issues 10,000 tokens per block. This results in roughly over 5 billion new tokens annually. This liberal approach is in line with the original conception of the token as a fun and accessible digital currency.
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