The SOON token has recently experienced a significant downturn, plummeting by 26% on November 16th amidst growing fears and bearish market indicators. This sharp decline is largely attributed to the looming threat of a substantial token unlock and intense selling pressure observed in the derivatives market, setting the stage for continued volatility.
Anticipation of Token Unlock Fuels Early Sell-Off
A primary catalyst for SOON's recent price depreciation is the impending release of 15.21 million tokens, representing 4.3% of its circulating supply and valued at approximately $32 million, scheduled for November 23rd. This sudden influx of supply is expected to exert considerable downward pressure on the token's price, especially given the current weak market demand. Investors appear to be preemptively offloading their holdings, opting to exit positions early to mitigate potential losses rather than risk being caught in a deeper decline post-unlock.
Derivatives Market Signals Strong Bearish Sentiment
Adding to the selling pressure, the derivatives market for SOON is exhibiting pronounced bearish characteristics. The Funding Rate has turned extremely negative, reaching -1.1307%, a clear indicator that sellers are dominating and willing to pay premiums to maintain short positions, forecasting further price depreciation. Concurrently, there has been a notable $6.29 million reduction in circulating liquidity, with a significant portion (roughly $3.9 million) stemming from investors voluntarily closing their positions. This sustained outflow of capital from the derivatives market aligns with the broader sell-off and reflects a widespread uncertainty among investors.
Critical Price Levels to Watch
Currently, SOON is hovering near a crucial support band between $2.00 and $1.94, a zone that has previously offered some stability since early November. The immediate future for the token largely depends on its ability to hold this level. A decisive close below $1.94 could trigger a more profound downward trend, potentially leading to further price erosion. Conversely, if the support zone manages to hold, SOON might find temporary stabilization during the unlock period or even attempt a short-term rebound.
