Blockchain gaming company Animoca Brands caused a stir across the cryptocurrency market on Thursday, heavily dumping the PIXEL token. Latest on-chain data revealed that whale activity for the coin also noted a remarkable surge recently. As a massive token unlock for the gaming-based crypto project approaches, these market stats have raised severe investor concerns over the coin’s future price action.
Animoca Brands Offloads 20M PIXEL To Binance, Investors Apprehensive Ahead Of Unlock
According to Arkham Intelligence’s data on September 19, the wallet ‘0x80AD37a41,’ potentially linked to Animoca Brands, shifted a whopping 20 million PIXEL worth $2.44 million to the crypto exchange giant Binance. As per the data, these coins were accumulated at an average entry price of $0.1356. Notably, following the dump transaction, the wallet address was left with a negligible amount of the mentioned token.
Simultaneously, data by Santiment suggested that the gaming-crypto project witnessed a whopping 750% surge in whale transactions in the past 24 hours. This data indicates heightened on-chain activity, possibly due to whales offloading their holdings as a massive token unlock for the coin approaches.
TokenUnlocks data indicates that a cliff unlock of 54.38 million coins hovers over the crypto horizon. The unlock, worth 7.05% of the asset’s circulation supply, is set to take place today, September 19.
For context, token unlocks pose a severe threat to any coin’s price, as the supply takes inflow while demand remains the same throughout the process. The unlocks refer to a strategic process where previously locked tokens are periodically released into the market.
Altogether, Animoca Brands’ massive dump and rising whale activity in light of the approaching unlock raises bearish concerns over the asset’s future price action.
Is PIXEL Price Readying For Fall?
Today, PIXEL price soared nearly 3% in the past 24 hours to trade at $0.1445. The token’s 24-hour low and high were $0.1275 and $0.1483, respectively. Today’s price upswing falls in line with the broader crypto market trend that mirrors optimism with the Fed’s latest rate cuts.
Nevertheless, the massive dump by Animoca Brands and the looming token unlock raised severe concerns among market participants surrounding the coin’s future price movements. Token unlocks are usually viewed as a bearish market phenomenon, which pull an asset’s price down
Besides, Coinglass data today spotlighted a nearly 3.5% decline in the coin’s futures OI to $14.91 million. This data raises further bearish investor concerns on the asset’s future price trajectory.
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