⚡ Unlock-Driven Volatility : Why Prices Can Suddenly Swing
In crypto, not all tokens are freely tradable from day one. Many are locked for team members, early investors, or advisors. When these tokens unlock, they suddenly become available for trading — and that’s when unlock-driven volatility kicks in.
📊 What usually happens :
Large token holders may sell part of their unlocked tokens
This creates sudden supply pressure, pushing prices down
Sometimes, buyers jump in, causing short-term spikes
Trading volume and price swings surge around unlock dates
🧠 Why it matters :
Even if a project is strong, unlock events can shake the market. Traders who ignore these dates risk getting caught in sudden dips or spikes. Smart traders track vesting schedules and wallet activity to stay ahead.
💡 Think of it like this :
It’s like opening a dam — a rush of water (tokens) hits the market, moving prices sharply before things settle.
🔍 In Short :
Unlock-driven volatility = sudden price swings caused by newly unlocked tokens entering the market.
