Space ID Faces Potential Sell-Off of $123 Million Worth of Tokens
Space ID (ID) is gearing up for a challenging week as it faces the possibility of a sell-off of tokens worth $123 million. This comes after the recent mention of ID in a sell signal report due to its overbought status. The smart contracts of Space ID will unlock 78.49 million ID tokens, equivalent to $123.22 million, on March 22 at noon (UTC). The data was retrieved by Finbold from TokenUnlocksApp on March 20. Space ID is a domain register and exchange protocol that competes with Ethereum Name Service (ENS).
It is worth noting that Space ID accounts for more than 54% of the total cliff unlocks on the platform for the next seven days, with a value of $226.95 million.
The Distribution of Space ID Tokens in the Sell-Off
In terms of distribution, the team behind Space ID will receive 40.99 million tokens, which represents 52% of the total unlocked tokens. These tokens will be allocated to various entities within the project, including the Ecosystem Fund, Foundation, Strategic Sales, Marketing, and Team. Additionally:
- ‘Seed Sale’ will acquire 20 million tokens
- ‘Advisors’ will acquire 11.67 million tokens
- 5.83 million tokens will be allocated for community airdrop
This distribution raises concerns about a potential sell-off threat in the future, with these entities alone having the ability to sell off over $49.72 million worth of tokens.
Space ID Price Analysis
Currently trading at $1.58 per token, Space ID has experienced an impressive price surge of nearly 465% since February 7, when it was valued at $0.28. However, the daily Relative Strength Index (RSI) indicates a sustained overbought status over an extended period. If a correction occurs, Space ID could face resistance in the $0.60 region.
Considering the significant token unlock, as well as the asset’s market capitalization and 30-day volume, it is highly likely that a sell-off is imminent for Space ID. Investors should be prepared for potential losses of around 60% if the token encounters resistance at $0.60. The volatility of ID may increase, making it crucial for cryptocurrency traders to exercise caution and closely monitor its price action.
Hot Take: Space ID Faces Potential Sell-Off Amidst Impressive Performance
Space ID is on the verge of a major sell-off as tokens worth $123 million are set to be unlocked. While the project has experienced significant growth in recent months, with a price surge of almost 465%, there are concerns about its overbought status and the potential for a price correction. The distribution of tokens among various entities further raises the possibility of future sell-offs.
Cryptocurrency traders must remain vigilant and closely monitor the price action of Space ID, as it may face increased volatility in the coming days. It is crucial to assess the impact of the sell-off on the token’s value and make informed investment decisions accordingly.
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