- 1INCH is set to unlock 14.81$ of 1INCH’s total supply by the end of the year
- Negative sentiment trails the token as holders begin to sell off their holdings
According to the dashboard, the unlocking process is scheduled to commence on 25 December and will run till the end of the year. The unlock amount represents 14.813 % of 1INCH’s total supply.
Read 1INCH Price Prediction 2023-2024
Of the 22,187,500 1INCH tokens to be unlocked, 1.81% of it, which is 27,187,500 1INCH, would be allocated as a protocol growth fund. Another 56,250,000 1INCH which makes up 3.75% of the total tokens to be unlocked, would be allocated as community incentives. The rest would be allocated to project team members, protocol advisors, seed investors, and Series A investors.
Any cause for panic?
Members of the 1inch community have expressed their concerns over the token dumping that might follow the unlocking process. The last token unlock took place in June, and this caused the price per 1INCH token to spiral down by 25%.
On-chain analytics firm Lookonchain also noted that on 2 December, 1inch Foundation transferred 15.56 million 1INCH tokens worth $8 million to Binance. According to Lookonchain, when a similar amount of 1INCH tokens were transferred on 9 June, 1INCH’s price declined by 25% within a week.
However, another analyst Don Yakka, stated that the huge transfers were not connected to 1inch Foundation. Instead, according to Don Yakka, “it is via an early investor because they have claimed through vesting contract.”
That is not from the 1INCH foundation wallet.
It is via a early investor because they have claimed through vesting contract, the date that 25% drop happened the whole market did, 1INCH does have a btc and eth pair so when these pairs increase be ready for pump too pic.twitter.com/2YDgSmymsU
— Don Yakka (@DonYakka) December 2, 2022
Further, another Twitter analyst CryptoBullet opined that the outlook for the next few months appeared bearish. He further went on to state that 1INCH might shed around 40% of its current value.
#1inch looks bearish for the next couple of months
The price is losing the vital $0.51 support.
We can easily see a -40% drawdown from here
👉 Big #1inch Unlock is coming! ~ 222.1M tokens will be unlocked on December 30th❗️
For reference, current circulating supply is 664.9M pic.twitter.com/Il4a1XXHCU
— CryptoBullet (@CryptoBullet1) December 4, 2022
Before you make your next trade
At press time, 1INCH exchanged hands at $0.4856. Its price was down by 2% in the last 24 hours, while its trading volume was up by 88% within the same period, per data from CoinMarketCap. This was an indication that selling momentum overshadowed buying pressure to put the sellers in control of the market.
1INCH’s Relative Strength Index (RSI) and Money Flow Index (MFI) showed that the asset was oversold at press time. The RSI was below its neutral spot at 37.72, while the MFI was spotted at 29.84.
This confirmed the negative sentiments that trail 1INCH ahead of the scheduled token unlock.