Dogecoin Faces 100 Million Token Unlock, Will DOGE Price Decline?

Dogecoin (DOGE) has seen an 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 the DOGE price. Now, as per the latest data, close to 100 million tokens are about to be unleashed into the market.

Token Unlocks Could Rock the Boat

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. The Dogecoin price is in focus considering the impact that token unlocks have on an asset’s value.

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. A CoinGape analysis showed that a Dogecoin breakout to $0.30 could be on the horizon. 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 Price In for Short-Term Volatility

While close to 100 million tokens are about to unlock, the DOGE price could be in for short-term volatility. Token unlocks typically spark a wave of sell-offs, which could lead to a decline.

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.

However, whales are still actively accumulating the mem coin amid this token unlock. CoinGape reported that whales scooped up over 100 million DOGE towards the end of April, offering a potential counterweight. Meanwhile, a whale also recently moved $148 million worth of DOGE, as part of the accumulation trend.

Expert Provides Bullish Outlook

Crypto analyst Trader Tardigrade has provided a bullish outlook for the top meme coin. In an X post, he predicted that the Dogecoin price would still reach the much-anticipated $1 level. This came as he revealed that a weekly MACD Bullish crossover just happened.

In another post, the analyst stated that the DOGE/BTC chart signals a bullish pattern that led the meme coin to spike 30,000% in the past cycle. He added that this same chart pattern has developed. As to what to expect, the analyst asserted there will be a “huge surge” in the Dogecoin price as BTC remains sideways.