Kaito Price Slumps as Whale Selling and Token Unlock Loom

Kaito has been experiencing a decline in value over the past few days, losing roughly 57% of its accumulated gains over the week. This trend continued as it lost another 11% as of writing.

This downward performance is largely driven by whales selling their KAITO holdings, with the whale retail delta remaining around 0.242 on the chart. Whales may be considering the asset overvalued and are selling it until it finds fair value.

The upcoming token unlock, scheduled for August 20th, could further contribute to this decline as 32.6 million KAITO tokens will be released into the market, representing 3.26% of the total supply. Historically, demand remaining limited after a token unlock has led to notable price declines.

Some traders are warning that the bearish sentiment across the crypto market and the upcoming token unlock could lead to further losses for KAITO. This is based on liquidation data showing a growing disparity between short and long positions, with long positions recording total liquidations of roughly $767,190 while short positions saw losses of $35,340.