A wave of token unlocks totaling more than $369 million is scheduled for the week of June 2 to June 9, and traders are bracing for volatility. The most intense pressure is expected on Taiko (TAIKO) and Neon (NEON), both of which face significant cliff unlocks that could trigger sharp price corrections.
TAIKO Braces for 71% Unlock Risk of Breaking to New Lows
According to Tokenomist, Taiko is poised for one of the largest cliff unlocks of the year, releasing 81.55 million tokens, which represents a staggering 71.23% of its total unlockable supply worth approximately $47.4 million at current prices.
TAIKO’s recent price action has been fragile. After failed reversal attempts in April and May, the token broke below its $0.70 support and slipped to $0.55, falling under its 20-day EMA. Technical indicators suggest further downside:
- RSI has dipped to 34, sloping downward
- Momentum has turned bearish following a 16% drop on May 31
- Volume has spiked as selling intensified
If downward pressure from the token unlock accelerates, TAIKO could test and potentially fall below its all-time low support at $0.48 a level that could trigger additional panic selling.
NEON Faces 6.5% Unlock Amid Weak Momentum
Neon (NEON) is also under pressure with an unlock of 53.19 million tokens, or 6.48% of its total unlockable supply, valued at $6.94 million. While not as large in relative terms as TAIKO, NEON’s price structure suggests similar bearish risks.
After a 40% price spike in mid-May, NEON failed to hold gains, with each attempt to reclaim the $0.13–$0.15 zone met with rejection. The token recently lost support at its 20-day EMA and is now heading back toward $0.11.
- RSI at 42 and trending lower
- Weak trading volume, indicating seller dominance
- A break below $0.11 would likely expose the $0.095 support zone
Ethena (ENA) and Others Also Set to Unlock
While TAIKO and NEON dominate in supply-impact terms, Ethena (ENA) will release the highest token value this week 212.5 million tokens worth $65.86 million though this only represents 3.72% of its total unlockable supply. ENA has held relatively steady compared to TAIKO and NEON but still faces downside risks if market sentiment turns risk-off.
Several other tokens will see linear unlocks during the same period:
- Solana (SOL): 0.09% of circulating supply
- Worldcoin (WLD): 2.69%
- Morpho (MORPHO): 2.57%
- Ethena Finance (ETHFI): 3.53% (highest among linear unlocks)
Market Outlook: Supply Shock or Buying Opportunity?
Large unlocks often create temporary selling pressure as early investors and insiders offload tokens. While not all unlocks guarantee price drops, the cliff unlocks for TAIKO and NEON are particularly concerning due to the high percentage of total supply and weak technicals.
Investors and traders will be closely watching support levels, volume patterns, and RSI trends across these tokens. A clean break below key zones like $0.48 for TAIKO or $0.095 for NEON could open the door for steeper corrections in the coming days.
