Key Takeaways
KAITO is facing a pivotal moment as a massive token unlock looms on August 20, threatening more downside for the price action.
With over 23 million tokens set to hit circulation, concerns about dilution and selling pressure are growing rapidly.
The big question is whether this unlock will fuel further downside in KAITO’s already bearish trend.
On Aug. 20, KAITO will unlock 23.35 million tokens, roughly 10% of the circulating supply.
Such large unlocks often have a bearish effect on the price, creating pessimism by diluting the supply.
The unlock will be KAITO’s first since the February Token Generation Event (TGE).
The allocation will be for long-term creator incentives, ecosystem growth, and the foundation.
Based on the allocation, some of these categories, especially creators, could worsen the selling pressure.

On top of the significant increase in circulating supply, the unlock will kickstart a linear vesting schedule that will accelerate in February 2026 and continue until 2029.
So, the upcoming KAITO token unlock is a bearish event and will add massive selling pressure in the future because it will also start a linear unlock.
The KAITO price outlook is bearish, showing a decrease under a descending resistance trend line since May 29.
More recently, the trend line rejected KAITO on July 22 (red icon), accelerating the decline.
Since then, the price has decreased below the $1.30 horizontal area, confirming resistance.
While momentum indicators could generate bullish divergences, they are still below their bullish thresholds, failing to confirm the trend reversal.

Additionally, even if the decline under resistance is an A-B-C correction, that predicts a low near $0.91, giving waves A and C the same length.
A steeper correction could take the KAITO price to a low of $0.78, taking it close to its all-time low.
Either way, KAITO will likely see more downside before an eventual trend reversal.
The upcoming unlock marks a critical test for KAITO, in terms of price resilience and investor confidence.
With resistance already broken and bearish momentum dominating, the market may be bracing for another leg down.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
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