In the coming weeks, pivotal token unlocks for PYTH and Optimism (OP) are expected to impact market dynamics significantly. On May 20, PYTH will release approximately 2.13 billion tokens, valued around $1.24 billion, which will double its circulating supply. Shortly after, on May 31, OP will unlock 386 million tokens, approximately worth $587 million, also doubling its supply. Both tokens currently exhibit warning signs as they face considerable sell pressure. For PYTH, the On-Balance Volume (OBV) has shown weakness, despite a slight price uptick. The critical support level stands at $0.12, while key resistance lies at $0.215. With the price hovering around $0.139 and a recent price decline, the upcoming unlock may increase volatility risks. On the other hand, OP is trading at about $0.632, having seen a slow decline from its peak of $2.773 in December 2024. The token is also witnessing heavy sell pressure, with the Chaikin Money Flow displaying negative trends. The price is under all major Exponential Moving Averages (EMAs), and significant resistance is present at $1.071 and $1.4. "Both tokens are under bearish pressure ahead of their unlock dates, and traders should prioritize caution in their strategies," noted a market analyst. For both tokens, the key levels of interest are $0.12 for PYTH and $0.545–$0.600 for OP, with market sentiment heavily affected by upcoming events. Traders are advised to monitor open interest and liquidity as price action unfolds in response to the unlocks.
Major Token Unlocks Loom for PYTH and Optimism: What Traders Need to Know
PYTH and Optimism (OP) are set to unlock significant token supplies this month, raising caution among traders as market momentum shows signs of weakness.
Jamie Bennett
Crypto Analyst
5 min read
26,183
Analysis
Market Sentiment
Bearish
Neutral
Bullish
News Impact
8/10
Credibility: 9/10
Trading Recommendation
OP
OP
SELL
Entry Price
$0.632
Confidence
50%
Stop Loss
$0.545
Take Profit
$0.8 - $1.071
While OP shows potential for short-term bounce due to oversold conditions, the bearish trend and upcoming token unlock create a high-risk situation.
