WhiteBIT Coin Price Forecast: WBT eyes $60.00 breakout despite $5 billion token unlock
- WhiteBIT Coin extends gains for the fifth consecutive day, trading in line with the broader crypto market's rise on Friday.
- The WhiteBIT Coin ecosystem braces for a massive token unlock as 81.53 million WBT are set to expand the circulating supply.
- Negative Open Interest Weighted Funding Rate signals caution as traders pile into short WBT positions.
WhiteBIT Coin (WBT) holds gains and rises for the fifth consecutive day, trading above $56.00 at the time of writing on Friday. WBT is up over 2% on the day, nearly 4% in the past week and 15% in a fortnight, according to CoinGecko. With a market capitalisation of $12 billion, WhiteBIT Coin is the 11th-largest cryptocurrency.
Massive token unlock could limit WBT upside potential
WhiteBIT Coin ecosystem is set to experience its first token unlock event and the largest one, as 81.53 million WBT are added to the circulating supply. CryptoRank’s data shows that this unlocks accounts for 25.5% of the total supply. It is worth $4.6 billion at the current exchange rate of $56.00 per WBT, making up 38.2% of the token’s market supply.
The ecosystem has a maximum supply of 400 million WBT, with 80% allocated to WhiteBIT Funds, 3.5% to the private round, 6.25% to the burn address, and 0.25% to the WhiteBIT launchpad.
Token unlocks are considered scheduled supply shocks, which can result in higher volatility. Anticipatory selling can occur before the events. However, the exact impact of the unlocks is nuanced, with instances of pricing in effects.
So far, WhiteBIT Coin appears to be steady, with the price holding five days of gains. However, traders should be cautious as the supply shock could lead to volatility before the price stabilizes.
Meanwhile, traders appear to be preparing to short WBT, as the futures Open Interest (OI) Weighted Funding Rate is holding in negative territory on Friday. If the outlook fails to improve, overhead pressure could limit WhiteBIT’s upside potential.
Technical outlook: WhiteBIT Coin seeks higher support
WhiteBIT Coin is trading above $56.00 as bulls tighten their grip, aiming for a breakout of the $58.00-$60.00 resistance range. The Moving Average Convergence Divergence (MACD) indicator remains above its signal line, while green histogram bars expand, suggesting that bulls have the upper hand.
Similarly, the Relative Strength Index (RSI) at 63 on the same chart signals a bullish shift before overbought territory. Key moving averages, including the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), trail WBT, upholding the bullish thesis.
The 50-day EMA is poised to cross above the 100-day EMA, forming a Golden Cross pattern, which may steady the uptrend further.
If resistance at $58.00 is not broken, the potential swing above $60.00 will fail to materialise. Moreover, with the schedule token unlock overhanging, volatility may trigger profit-taking and lead to a trend reversal. Initial support is seen at $55.81, which, if broken, may expose the confluence of support around $53.00 formed by the 50-day and 100-day EMAs.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
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