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Dogecoin is one of several significant tokens that will have scheduled unlock events over the next week, which could influence short-term price movement. From May 12 to May 19, nearly 96.52 million DOGE, or roughly $22.75 million, will be linearly unlocked, per Tokenomics data shared by WuBlockchain. Despite making up only 0.06% of the total supply in circulation, the event coincides with increased volatility and pressure to unlock the cryptocurrency market as a whole.
With major players like APT, ARB, SOL and WLD also contributing to the volume, over $774 million worth of tokens are scheduled to be unlocked this week. This kind of unlock frequently results in selling pressure, particularly if it occurs on weak support levels or during periods of the market that are already overheated. Dogecoin has demonstrated considerable strength in terms of technicality prior to the unlock window.
DOGE rose as high as $0.25 before encountering resistance after effectively overcoming the psychological $0.20 barrier, as well as the 100 and 200 EMA levels. With the RSI hovering around 73, it is currently in overbought territory, suggesting potential exhaustion or a pullback, especially if supply related to unlocking starts to seep into the market. It will be crucial to watch how DOGE moves in the next few days around the 200 EMA, which is currently serving as a support level at $0.21.
Should it hold, the token might start moving higher again, heading toward $0.30. A retracement toward the $0.20 or even $0.19 range, however, might occur rapidly if unlock-related inflows cause a sell-off. It is important for market participants to remain alert. Though comparatively small in DOGE's case, percentage-wise unlocks of this size have the power to change sentiment, particularly when combined with price saturation or general market uncertainty.
If the demand continues to be strong and unlocks are absorbed calmly, DOGE might profit further from the positive momentum that was established in early May. Now the crucial question is whether Dogecoin can sustain this momentum or if the rally will be weakened by the unlock wave.
Vladislav Sopov