SingularityNET price rally countered by supply pressure from upcoming token unlock event
- SingularityNET price is up around 20% since the October 19 low of $0.1570, joining the broader market’s move north.
- The uptrend could be tumultuous as 9.53 million AGIX tokens worth approximately $1.84 million flooded markets this week.
- Invalidation of the bearish outlook will occur after the altcoin breaks and closes above the 3-day FVG at $0.22.
SingularityNET (AGIX) price is among the altcoins rallying along with the king of crypto, Bitcoin (BTC), recording a series of higher highs on lower timeframes. However, the gains have culminated at a critical juncture, stiffened by a network fundamental likely to cap the gains for the cryptocurrency.
SingularityNET price rallies ahead of unlocks event
SingularityNET (AGIX) price is bullish, up almost 25% from the October 19 low of $0.1570 on the three-day chart below. The surge has AGIX confronting the $0.1927 resistance with the potential for more gains, save for the supply pressure expected on October 28.
Meanwhile, the odds still favor the bulls, with the Relative Strength Index (RSI) resting above 50 in an overall northbound move to show rising momentum. The Awesome Oscillator (AO), though lagging, also corroborates the outlook with a green histogram thinly drawing toward the positive territory.
Increased buying pressure above the current price could see SingularityNET price decisively break above the $0.1927 resistance level to tag the fair value gap (FVG). This order block represents an inefficiency in the AGIX market as a lot of orders were injected here, thereby creating an imbalance. To resolve this inefficiency, price has to tag this zone to fill the resting orders.
Perpetual traders looking to long AGIX could consider having their take profits just below the FVG or along its lower boundary at $0.1981.
AGIX/USDT 1-day chart
A rejection from this zone could see SingularityNET price pull towards the $0.1800 psychological level, or in the dire case, extend a leg lower to the $0.1700 psychological level.
AGIX token unlocks
Meanwhile, adding to volatility to the fundamentals is the 9.53 million AGIX tokens worth approximately $1.84 million expected to flood the market on October 28 in a cliff unlock. The tokens will be put towards AGIX-ADA token utility.
If history repeats, akin to what happened during the September 28 unlocks event where 9.68 million AGIX tokens worth around $1.87 million were unleashed to the market towards the same course, SingularityNET could extend the gains, likely into the FVG before market volatility influences a turnaround.
AGIX token unlocks
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
