- With an $800,000 token unlock, GRASS price falls.
- 181 million tokens released, sparking dilution and sell-off concerns.
- Technical analysis shows weak momentum but hints at a possible rebound.
As the market braces for a large GRASS token unlock, the token’s price is under significant pressure.
At 13:30 UTC today, 181,000,000,000,000 new tokens (worth more than $80,000,000) will enter circulation, and investors are closely watching whether this move signals a deeper downturn or merely a short-term shakeout before a recovery.
The Grass network is built on Solana and supports decentralized data infrastructure, allowing users to share idle bandwidth to power artificial intelligence and web crawling applications.
Despite strong fundamentals, the latest token unlock could obscure long-term potential with short-term volatility.
GRASS price struggles under selling pressure
Over the past 24 hours, GRASS has declined about 2.9%, trading near $0.41 and underperforming the broader crypto market, which fell only 0.56%.
The token has lost more than 50% in the past 30 days, reflecting rising investor anxiety ahead of the unlock.
Notably, the upcoming release will increase circulating supply by nearly 58%, from 243,000,000,000 tokens to roughly 424,000,000,000 tokens.
The surge in available tokens raises serious dilution concerns, especially in markets already suffering from low liquidity.
Worryingly, data shows weekly trading volume has dropped by over 25%, indicating weak demand to absorb the incoming supply.
Historically, token unlocks of this scale often trigger immediate price drops of 10–30% or more as early investors and contributors take profits.
GRASS’s nearly 50% decline last month fits this pattern and reinforces the view that the market has been pricing in the unlock for weeks.
Token unlock overshadows Grass’s funding optimism
Earlier this month, Grass raised $10 million led by Polychain Capital and Tribe Capital to expand its decentralized AI data network.
The investment validated the project’s DePIN model and its 8.5 million active users, but market reaction was muted.
The announcement failed to spark a rebound and coincided with a 6% drop in GRASS as investors focused on the imminent unlock.
Part of the concern stems from the nature of the funds, which include token allocations that could increase near-term selling pressure.
As a result, even fundamentally positive developments have been viewed through a bearish lens, and traders are inclined to stay on the sidelines until price action stabilizes after the unlock.
Technical outlook suggests fragile stability
Technically, GRASS remains in a clear downtrend.
The token trades below all major moving averages, with the 7-day moving average near $0.4266 and the 30-day moving average at $0.6243.
Momentum indicators confirm weakness — the RSI sits around 35, signaling oversold conditions, while the MACD is attempting a mild bullish crossover.
Chart patterns point to a large descending triangle, with GRASS hovering near its lower boundary.
The next major support lies at $0.3126, marking the 2024 low, while resistance sits near $0.4694 and more prominently at $0.90 — the point of control (POC) on the volume profile.
A break above these areas could indicate the start of a recovery phase, but upside potential will remain limited until volume returns.
Interestingly, Bitcoin’s weekend strength sparked brief optimism and pushed GRASS higher on a large green candle, but follow-through buying has been weak, highlighting trader caution ahead of the unlock.
What happens after the GRASS token unlock?
The immediate consequences of the token unlock will determine whether the event deepens the sell-off or resets the path for future growth.
If selling pressure surges, GRASS could test new lows below $0.31.
However, if buyers absorb the new supply and the RSI begins to recover, a short-term rebound toward the $0.47 resistance area is possible.
While GRASS’s fundamentals—centered on decentralized AI data infrastructure—remain sound, market attention is currently focused on supply dynamics and investor sentiment.
As tokens flow onto exchanges, GRASS will need convincing demand to persuade traders that the worst is behind it.