Massive Dogecoin (DOGE) and Solana (SOL) Unlocks Imminent: What to Expect

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The cryptocurrency market is bracing for token unlocks exceeding $250 million in the next seven days. Key among these are the linear unlocks from Solana and Dogecoin, two assets whose market structures are currently vulnerable. Data from Tokenomist and WuBlockchain indicates that SOL faces a substantial unlock of $61.83 million (465,770 SOL), while DOGE is slated to release $14.69 million worth of tokens (95.89 million DOGE).

While AVAX also has an unlock scheduled for $11.65 million, DOGE and SOL are particularly susceptible due to their current technical positions. DOGE has been hovering around $0.145, precariously close to a crucial support level. The major moving averages (50, 100, and 200 EMAs) all lie above the current price, suggesting a bearish overall trend despite a slight recent rebound.

With an RSI around 31, DOGE is leaning towards oversold territory, potentially signaling a short-term recovery. However, the impending token unlock poses a risk. Should the increased supply enter a market already lacking strong bullish sentiment, DOGE could break below $0.145 and potentially retest the $0.12 level. This meme asset could experience a prolonged decline unless bulls swiftly reclaim levels above $0.18.

The situation with SOL mirrors this concern. Currently trading around $134, it has already fallen below its 200 EMA and is struggling to hold the $130 range. Momentum appears weak, and the RSI sits in the mid-30s. The significant $61 million unlock scheduled for the coming days further exacerbates the downside risk. Without a robust recovery above $150-155, SOL could descend into the $120s, potentially dampening the overall market sentiment.

While these unlocks are often partially priced in and known in advance, the risk intensifies when they coincide with bearish price action and waning market confidence. Both DOGE and SOL are vulnerable to accelerated sell-offs if current support levels fail amidst increasing token circulation. Traders should monitor for shifts in volume and short-lived volatility spikes as the unlock window progresses.