This week, several popular cryptocurrencies will experience significant token unlocks, potentially impacting their prices. The circulating supply of tokens plays a crucial role in determining their value, and the release of locked tokens can trigger substantial fluctuations. Investors are cautious, as the influx of new supply may lead to selling pressure and price drops.

Pyth Network (PYTH) is one of the cryptocurrencies facing a major token unlock on May 20, with 2.13 billion tokens set to be released. This exceeds the current circulating supply, potentially causing medium-term price issues due to increased selling pressure. Crypto investors, aware of the risks, are considering short positions, as seen in social media posts. "The $910 million Pyth unlock happens on May 20... I'm looking for short setups."

Avalanche (AVAX) is another altcoin with high annual inflation, undergoing frequent token unlocks. On May 22, an additional 382.77 million AVAX will enter circulation, increasing the current supply of 9.54 million AVAX. Investors are preparing by trading or staking their assets. Space ID (ID) will also experience a token unlock on May 22, with 18.49 million ID Tokens set to be released. This digital identity initiative will distribute the unlocked tokens to the foundation, with the remaining portion going to airdrops and ecosystem funds.

While token unlocks often lead to price drops, there have been instances where the opposite occurred. As a result, investors are uncertain about the price direction, making it essential to monitor the situation closely. The delicate balance between supply and demand will determine the impact of these token unlocks on cryptocurrency prices.