Sentiment Shift in Cryptocurrency Market
Recently, there has been a shift in sentiment within the cryptocurrency market from bearish to bullish, triggered by Jerome Powell’s dovish speech as the Fed’s chair. This change has led to increased buying pressure on most cryptocurrencies. However, three digital assets are at risk of potential sell-offs this week.
XRP’s $120 Million Sell-Off
One of the impending sell-offs to watch out for is from Ripple, specifically concerning the XRP Ledger. Ripple typically moves over 200 million XRP monthly from its treasury account, with most of these tokens being sold. In a recent study, it was revealed that Ripple has already moved 1.826 billion XRP in likely sell-offs this year.
- XRP Ledger is the target for the sell-off
- Ripple moves over 200 million XRP monthly
Optimism (OP) Unlock
Another cryptocurrency to avoid trading this week is Optimism (OP). There is an incoming unlock scheduled for August 31, where 31.34 million OP will be released to Core Contributors and Investors, increasing the circulating supply by 2.6%.
- Unlock scheduled for August 31
- 31.34 million OP will be released
Avoid Trading Yield Guild Games (YGG)
Yield Guild Games (YGG) is also in the spotlight, with an unlock of 14.08 million YGG expected. This unlock, representing 3.7% of the token’s circulating supply, is anticipated to impact the Web3 gaming project from August 27 onwards.
- Unlock of 14.08 million YGG
- Expected impact on Web3 gaming project
Proper Evaluation of Tokenomics Essential
It is crucial for investors to thoroughly analyze and comprehend a cryptocurrency’s tokenomics before investing capital to avoid potential surprises from sell-offs. However, the price may remain unaffected by an unlock or impending supply pressure if there is sufficient demand for the cryptocurrency.
Hot Take: Stay Informed and Cautious
As a cryptocurrency enthusiast, it’s important to stay informed and exercise caution when navigating the market. By keeping an eye on potential sell-offs and understanding tokenomics, you can make more informed decisions and minimize risks in your investment strategies. Remember, knowledge is power in the world of cryptocurrencies.
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