Cryptocurrency Market Sentiment Shifts From Bearish to Bullish After Dovish Speech by Fed Chair Jerome Powell

While most cryptocurrencies are seeing increased buying pressure, three digital assets may suffer from impending sell-offs this week.

Cryptocurrency price analysis reveals three digital assets that may experience sell-offs this week.

As reported by Finbold on August 23, the community expressed concerns about crypto selling activity following the Ethereum Foundation’s transfer of 35,000 Ethereum (ETH) to Kraken.

However, Aya Miyaguchi clarified that the transaction is part of the Foundation’s yearly budget for treasury management activities.

Moreover, considering the amount, which constitutes 0.03% of Ethereum’s circulating supply, it is unlikely to have a significant impact on the token’s price, especially when spread out over the remaining months of the year.

On the other hand, Finbold has identified three cryptocurrencies with upcoming potential sell-offs that will comprise a larger percentage of their circulating supplies.

Traders are advised to observe these projects closely in the coming days and weeks for the selling activities to unfold.

XRP’s impending $120 million sell-off

The first and most notable impending sell-off is from Ripple concerning the XRP Ledger (XRP). Usually, the company moves over 200 million XRP every month from its treasury account, and it is widely assumed that the majority of these tokens are sold.

According to a previous Finbold study, Ripple has moved 1.826 billion XRP in likely sell-offs year-to-date. At the time of writing, 200 million XRP, valued at about $124 million, are still present in ‘Ripple (1),’ as indicated by on-chain data.

Optimism (OP)

Second, Optimism (OP) stands out among the cryptocurrencies to avoid trading this week with an upcoming unlock on August 31. The Ethereum’s second layer network will release 31.34 million OP, worth $50.46 million, to “Core Contributors” and “Investors.”

This activity will inflate Optimism’s circulating supply by 2.6%, and the project alone accounts for 67% of all $74.81 million worth of token unlocks expected for the next seven days, according to data from TokenUnlocksApp retrieved on August 24.

Avoid trading Yield Guild Games (YGG)

Summing up to the week’s unlocks, Yield Guild Games (YGG) will unlock 14.08 million YGG that are expected to be partially sold in the market by the Community, Founders, Investors, and Treasury.

Interestingly, YGG’s unlock equals $6.82 million at current prices but still represents 3.7% of the token’s circulating supply. Therefore, although comparatively low to other sell-offs, this event can still impact the Web3 gaming project from August 27 onward.

Investors are encouraged to thoroughly study and understand tokenomics before allocating funds to cryptocurrencies to avoid being caught off guard by sell-offs.

However, it is crucial to note that an unlock or impending supply pressure may not necessarily affect the price if there is sufficient demand for the cryptocurrency.

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