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Token unlocks totaling over $369 million are set to occur this week, putting significant pressure on the prices of cryptocurrencies like Taiko (TAIKO) and Neon (NEON). These two tokens are expected to release 71% and 6.5% of their unlockable supply, respectively, making them the most affected by this event.

TAIKO Faces Major Cliff Unlock

Taiko (TAIKO) is bracing for the largest cliff unlock of the week, with 81.55 million tokens—71.23% of its total unlockable supply—valued at $47.4 million set to be released. This event poses a considerable downside risk for TAIKO’s price based on recent market activity and technical indicators.

TAIKO attempted a price reversal in late April and May, breaking above the EMA 20 with two consecutive higher highs. However, the momentum failed to sustain, leading to a lower high, pullback, and consolidation. The price eventually fell below local horizontal support at $0.70 and dropped further to $0.55, breaking below the EMA 20.

Key indicators signal weakening momentum:

  • The RSI currently sits at 34, sloping downward, indicating bearish sentiment.
  • A sharp 16% drop on May 31, accompanied by high trading volume, suggests investor anticipation of further declines.

If the upcoming unlock exacerbates selling pressure, TAIKO’s price risks falling below its all-time low of $0.48—a critical support level. Traders should monitor price movements closely as this unlock unfolds.

NEON Under Pressure Amid Unlock Event

Neon (NEON) is also set to face significant pressure with the release of 53.19 million tokens, or 6.48% of its unlockable supply, valued at $6.94 million. Similar to TAIKO, NEON’s price action has been bearish in recent weeks.

After a sharp 40% price spike in mid-May, NEON retraced most of its gains the following day. The token has since struggled to sustain levels above the $0.13–$0.15 range. Recent price movements show rejection at key levels, with sellers regaining control as volume thins.

Technical indicators highlight bearish trends:

  • The RSI sits at 42, below its moving average and trending downward.
  • The price recently broke below EMA 20, signaling waning momentum.

If selling pressure intensifies, NEON risks retesting critical support around $0.11. A break below this level could expose the $0.095 zone, which previously acted as a base.

Ethena (ENA) Unlock and Other Linear Events

Ethena (ENA) is set to unlock 212.5 million tokens, valued at $65.86 million. While this represents a larger absolute value, it accounts for only 3.72% of its total unlockable supply, minimizing its immediate price impact compared to TAIKO and NEON.

In addition to the cliff unlocks, several tokens will experience linear unlock events during the same period:

  • Solana (SOL): Releasing 0.09% of its circulating supply.
  • Worldcoin (WLD): Unlocking 2.69% of its circulating supply.
  • Morpho (MORPHO): Unlocking 2.57% of its circulating supply.
  • Ethena Finance (ETHFI): Releasing 3.53% of its circulating supply—the highest among linear unlocks.

These unlock events could create additional volatility across the cryptocurrency market, particularly for tokens with substantial unlock percentages.

Preparing for Market Volatility

As token unlocks unfold, investors should adopt strategies to mitigate risks and capitalize on potential opportunities:

  • Monitor support and resistance levels: Identify key price zones to plan entry or exit points.
  • Track trading volume: High volume during unlock events may signal significant market moves.
  • Stay updated on technical indicators: Pay attention to RSI, EMA, and other metrics to gauge sentiment.

Understanding the impact of token unlocks can help investors navigate market dynamics effectively, especially during periods of heightened volatility.

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