I just took a closer look at token unlocks and realized that this is an extremely important factor that many investors often overlook.

Token unlock is the process of releasing tokens from the (vesting) state to enter circulation in the market. The initial purpose is quite reasonable – controlling supply, preventing immediate profit-taking dumps, and creating price stability. But in reality, token unlocks can cause significant volatility.

Why is that? It's simple. When a large amount of tokens are unlocked, early investors and the team may take profits, creating enormous selling pressure. If the amount of tokens unlocked is too large relative to the circulating supply, the price can plummet quickly. Market psychology also plays a big role – investors often sell before the event occurs out of fear of a dump.

I’ve observed two interesting real cases. TRUMP coin recently had a fairly large unlock schedule, but the price recovered well thanks to positive news. Conversely, APT experienced three token unlocks with different scenarios – the first and second saw prices rise before falling, but the third was disrupted due to a market crash.

Thus, token unlocks are not always a negative signal. It depends on: who will receive the tokens (team, investors or the community), whether they have the motive to sell, and what news accompanies the event.

To avoid surprises, I recommend monitoring the token unlock schedule through reputable tools like Tokenomist or DeFiLlama. They provide detailed information on each unlock, including amounts, percentages, and recipients. Also, check announcements from the projects themselves on X, Discord, or Medium.

But don’t rely solely on token unlocks to make decisions. Combine it with technical analysis, market news, and overall sentiment to make smarter choices. I’ve seen many traders make good profits by understanding the token unlock schedule and participating in the upward waves before the unlock occurs. Wishing you successful trading!