ZKsync (ZK) Price Faces Sell-off Risk Ahead of Token Unlock: What to Expect

• ZKsync (ZK) faces a massive token unlock on June 17.
• The ZKsync price trades close to its all-time low.
• Will the added selling pressure trigger another decline?

A massive token unlock awaits ZK today, increasing the circulating supply by over 20%.

Token unlocks of a significant percentage of the circulating supply have historically provided selling pressure, pushing the price down.

With that in mind, let’s analyze the unlock alongside the price action and see if the same will happen to the ZK price.

ZK Token Unlock

ZKsync unlocked 3.68 billion tokens at launch on June 17, 2024, and has not unlocked any more tokens since.

That is set to change today, when another 770 million tokens will be unlocked, representing 20.8% of the circulating supply.

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While the cliff unlock is consequential, its effect on the ZK emissions does not stop there.

The unlock will begin a linear unlock schedule that will continue for three years, with monthly unlocks of 173 million ZK tokens.

The only saving grace for the selling pressure is that half of the unlock will go to the team, which might not provide selling pressure.

However, the other half will go to investors from the Seed and Series A, B, and C funding rounds, who could sell their tokens. However, there is no publicly available data on the prices at which the rounds were conducted , making it difficult to ascertain whether they are likely to sell and realize profits.

ZK Price Breakdown

The daily time frame ZK price analysis gives a bearish outlook, increasing the likelihood that the unlock will cause another decline.

The ZK price has fallen in a five-wave downward movement (red) since December 2024. The all-time low of $0.04 on April 15 (green icon) marked the bottom of wave three.

While ZK bounced afterward, the increase was a three-wave structure, a sign of a corrective bounce. The ZK price confirmed this with a breakdown from an ascending support trend line.

So, ZK is likely in the fifth and final wave of its downward movement, which could reach a new all-time low of $0.028.

Technical indicators align with this bearish outlook. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.

The RSI is below 50, and the MACD is negative, indicating a bearish trend and new lows in June.

New Lows Incoming

The ZK supply will increase by 20% today, possibly adding pressure to an already bearish price action.

ZK is likely in the fifth and final wave of a downward movement that will take it to a new all-time low.