As the dYdX token unlock event scheduled for November 21 approaches, there has been a notable increase in large transactions and whale activities. Early today, the cryptocurrency's trading volume hit a three-month high, signaling a boost in market interest.
On-chain data provided by Santiment indicates that the number of active addresses holding dYdX tokens and the overall trade volume has risen, contributing to short-term price gains. This uptick in activity comes at a critical time just before a significant number of tokens are set to become available for trading.
Nevertheless, the upcoming unlock event is also raising concerns about potential selling pressure. According to Token.unlocks.app, approximately $6.69 million worth of dYdX tokens will enter circulation during the event, which could lead to a price correction as market supply increases.
This development follows heightened trading activity observed last Sunday when the Network Realized Profit/Loss (NPL) metric surged. The metric suggested that traders were offloading dYdX tokens. Interestingly, this sell-off did not coincide with significant profit-taking by whale accounts, which some investors interpret as a bullish sign for the token's value.
Investors and traders are closely monitoring these dynamics as they may influence the dYdX token's price trajectory in the days leading up to and following the unlock event. The balance between increased liquidity from the token release and the current whale activity will likely play a key role in determining market sentiment and price stability for dYdX.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.