Space ID price ready for some action with almost $4 million worth of ID tokens slated for unlocks soon

Space ID price is down 35% from the monthly high of $0.284 recorded during the first week of August.
After a multi-month downtrend, ID may be ripe for some action, crawling back to $0.223 or slumping further.
On-chain metrics show growing activity, with investors looking to capitalize on the $3.48 million token unlocks event on August 22.

Space ID (ID) price has been on a steady downtrend for several months, recording lower highs and lower lows. With Bitcoin (BTC) consolidating and failing to provide directional bias for weeks, investors shifted to low market cap tokens like ID for action, which explains the oscillatory price action.

Also Read Binance Coin Price Forecast: BNB could crash 35% amid mounting bearish signs.

Space ID to move soon

Space ID (ID) price may be due for its next move soon, potentially to the upside after the recent breakdown that saw investors lose up to 35% in value. After finding support around the $0.183 level, the token could spring north, drawing toward the $0.223 resistance level, in a move that would constitute a 20% upswing.

The Relative Strength Index (RSI) is already inclined north, suggesting more bulls are coming to the scene and momentum is rising. Further north, Space ID price could extend to flip the lower boundary of the descending triangle into a support level.

However, for ID to escape the overall bearish outlook, Space ID price must also escape above the upper boundary of the falling triangle at around $0.240 and potentially test the supply zone around the $0.260 level, where sellers abound. This area would be a possible turnaround point for Space ID price.

ID/USDT 1-day chart

On-chain metrics to support the optimistic outlook and why

On-chain metrics from Santiment show that traders have started moving in the ID market. Specifically, the volume of transactions involving the ID token has been on a steady uptrend over the last few days, rising almost 240% from 8.07 million on August 13 to the current 27.6 million.

ID Santiment

Similarly, the number of active addresses on hourly and daily timeframes has been rising, indicating investor interest in the token.

The upcoming Space ID token unlocks event is the most likely reason for renewed investor interest in ID tokens. On August 22, the network will unleash 18.49 million ID tokens to its circulating supply, worth approximately $3.4m.

ID Token Unlocks countdown

Notably, the event will be a cliff rather than a linear unlocks. The tokens will go towards the community airdrop (5.83M), ecosystem fund (2.78M), the foundation (5M), and for marketing purposes (4.88M), totaling 18.49 million tokens to be unleashed.

The chunk going toward project development will stay in the ecosystem and will not be sold immediately for a profit. As project development is a bullish market maker to increase confidence in the project, some investors may want to buy in.

The rest will go to the community, comprising early investors and token holders. This will be on a large stake risk and will therefore create selling pressure, leading to a fall in price after the unlocks.

The ensuing selling pressure could cause a fall in Space ID price, which could see IID lose the current support at $0.183.

Cryptocurrency metrics FAQs

What is circulating supply?

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

What is market capitalization?

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

What is trading volume?

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

What is funding rate?

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

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