Main Highlights
- GRASS experienced a price decline as approximately $80 million worth of tokens, totaling 181 million, were unlocked.
- This substantial token release has raised concerns about potential dilution and increased sell-off pressure.
- Technical indicators suggest weak momentum, though there are subtle hints of a potential price rebound.
GRASS Under Pressure Amid Massive Token Unlock
The price of GRASS is facing significant downward pressure as the market prepares for a substantial GRASS token unlock event. With 181 million new tokens, valued at over $80 million, entering circulation, investors are closely monitoring the potential impact on the token’s price trajectory.
Grass is a decentralized data infrastructure network built on Solana. It enables users to share idle bandwidth, supporting applications such as artificial intelligence and web scraping. Despite its strong underlying technology, the impending token unlock poses a risk of short-term volatility, potentially overshadowing its long-term prospects.
GRASS Price Struggles Amidst Selling Pressure
Over the last 24 hours, the GRASS token has seen a decline of 2.9%, trading near the $0.41 mark. This performance underperforms the broader cryptocurrency market, which experienced a more modest slip of 0.56%. The token has now fallen by more than 50% in the past 30 days, reflecting growing investor apprehension leading up to the unlock event.
The upcoming token release is set to increase the circulating supply by nearly 58%, from 243 million to approximately 424 million tokens. This significant influx of new coins raises considerable concerns about dilution, especially in a market already contending with subdued liquidity.
📊 Data indicates that trading volume has decreased by over 25% in the past week, suggesting insufficient demand to absorb the forthcoming supply. Historically, token unlocks of this magnitude often lead to immediate price drops of 10–30% or more as early investors and contributors realize profits.
⚡ The nearly 50% decline in GRASS over the last month appears consistent with this trend, reinforcing the perception that the market has been anticipating the unlock for several weeks.
Funding Optimism Overshadowed by Token Unlock
Earlier this month, Grass successfully secured $10 million in funding, with Polychain Capital and Tribe Capital leading the round. The investment was intended to support the expansion of its decentralized AI data network. This funding round validated the project’s Decentralized Physical Infrastructure Networks (DePIN) model and its user base of 8.5 million active users. However, the market’s reaction was notably subdued.
Instead of triggering a price rally, the funding announcement coincided with a 6% drop in GRASS’s value as investors remained focused on the imminent token unlock. A contributing factor to this concern is the allocation of tokens as part of the funding, which may add to near-term selling pressure.
📍 Consequently, even fundamentally positive developments are being viewed through a bearish lens. Traders appear to be adopting a wait-and-see approach, preferring to remain on the sidelines until price action stabilizes post-unlock.
Technical Outlook Suggests Fragile Stability
From a technical standpoint, GRASS is currently experiencing a pronounced downtrend. The token is trading below all major moving averages, with its 7-day Simple Moving Average (SMA) near $0.4266 and its 30-day SMA at $0.6243.
Momentum indicators are signaling weakness. The Relative Strength Index (RSI) is hovering around 35, indicating oversold conditions, while the Moving Average Convergence Divergence (MACD) is attempting a modest bullish crossover.
Chart patterns reveal a large descending triangle formation, with GRASS currently positioned close to its lower boundary. The next significant support level is identified at $0.3126, which represents the year-to-date low. Resistance levels are observed near $0.4694 and, more prominently, at $0.9, which acts as the crucial Point of Control (POC) on the Volume Profile indicator.
A breakout above this zone could signal the commencement of a recovery phase. However, without a return of trading volume, the upside potential remains constrained.
📌 Interestingly, Bitcoin’s strength over the weekend spurred a brief surge of optimism, causing GRASS to rally on a significant green volume candle. Despite this, follow-through buying has been limited, suggesting that traders remain cautious ahead of the token unlock.
Anticipating Post-GRASS Token Unlock Market Dynamics
The immediate period following the GRASS token unlock will be critical in determining whether the event exacerbates the sell-off or serves as a precursor to future growth. If selling pressure intensifies, GRASS could challenge new lows below the $0.31 support level.
💡 Conversely, if buyers successfully absorb the newly available supply and the RSI shows signs of recovery, a short-term rebound towards the $0.47 resistance level may occur.
While GRASS’s fundamental strengths in decentralized AI data infrastructure remain robust, the market’s immediate focus is on supply dynamics and investor sentiment. As the influx of tokens reaches exchanges, GRASS will need to demonstrate compelling demand to instill confidence among traders that the current downturn has reached its nadir.