Cover image via U.Today

Dogecoin is among several prominent cryptocurrencies facing scheduled unlock events this week, potentially impacting short-term price fluctuations. Between May 12th and 19th, approximately 96.52 million DOGE, valued at roughly $22.75 million, will be linearly unlocked, according to Tokenomics data from WuBlockchain. While representing only 0.06% of the circulating supply, this event coincides with heightened market volatility and existing pressure on the broader cryptocurrency market.

This week's unlock events, encompassing significant tokens like APT, ARB, SOL, and WLD, will release over $774 million worth of tokens. Such unlocks often create selling pressure, especially if they occur at weak support levels or during already overheated market conditions. Dogecoin, however, has shown considerable technical strength leading up to this unlock window.

DOGE reached a high of $0.25 before encountering resistance, successfully overcoming the psychologically significant $0.20 level and the 100 and 200 EMA levels. With the RSI near 73, it's currently in overbought territory, suggesting a potential pullback, particularly if the unlocked supply enters the market. Close observation of DOGE's movement around the 200 EMA (currently acting as support at $0.21) will be crucial in the coming days.

Sustaining this support could propel DOGE towards $0.30. Conversely, a rapid retracement to $0.20 or even $0.19 is possible if unlock-related selling pressure emerges. Market participants should remain vigilant. Although relatively small for DOGE, unlocks of this magnitude can shift market sentiment, especially when combined with price saturation or broader market uncertainty.

Continued strong demand and calm absorption of the unlocked tokens could allow DOGE to capitalize on the positive momentum established in early May. The key question now is whether Dogecoin can maintain this momentum or if the rally will be dampened by the upcoming unlock wave. Read the original article on U.Today