The cryptocurrency market unexpectedly shifted this week, moving from a negative outlook to a more positive one. This change coincided with lower-than-expected non-farm payroll data released in April, indicating potentially positive macroeconomic conditions for riskier assets like cryptocurrencies.

Despite this optimistic turn, there are concerns looming for specific cryptocurrencies. Experts have highlighted that planned token unlockings in the next week could lead to significant inflationary pressure on Heroes of Mavia (MAVIA), Galaxy (GAL coin), and Hashflow (HFT).

Analyst Vinicius Barbosa warns against trading these three coins in the upcoming week due to the unlocking events. The introduction of a substantial amount of new tokens into circulation through these operations, totaling $56.24 million, particularly in the mentioned projects, raises red flags for market stability.

Potential Impact of Token Unlockings on MAVIA, GAL Coin, and HFT

Why should MAVIA and others be on your radar? MAVIA, with a substantial 55% share of the upcoming unlocking's market value, faces potential price fluctuations. On May 6, it is set to unlock $30.79 million worth of tokens (6.328 million), a significant portion of the current circulating supply at 25%. Notably, a considerable amount of these unlocked tokens come from pre-sale vesting agreements and team allocations, suggesting possible profit-taking activities.

Caution Ahead for GAL Coin and HFT

Prepared for GAL coin and HFT? GAL aims to unlock $19.20 million worth of tokens (5.17 million) this week, accounting for 34% of total unlockings and a potential 5.8% market value drop. Like MAVIA, a significant portion of these unlocked tokens is sourced from team allocations and strategic sales, indicating potential selling pressures. Hashflow's unlocking of $4.20 million on May 7, though smaller, signifies a notable inflow for the project, focusing on early investors, ecosystem development, and team profits, suggesting the likelihood of increased selling activities.

In Summary

While unexpected positive movements could occur in the prices of these cryptocurrencies post-token unlockings, a cautious approach is advised. As highlighted at CoinOtag, careful risk management demands vigilance when facing substantial supply pressures. Investors and traders should thoroughly assess the potential implications of these unlockings before engaging with MAVIA, GAL coin, and HFT in the forthcoming week.