XPL price under pressure due to large token unlock in September

The XPL price is under pressure as a major token unlock approaches this month. Analyst DaanCrypto sees a so-called falling wedge on the chart, a pattern that is seen as positive when it breaks to the upside, but he points out that the upcoming unlock is hampering the recovery for now. He is monitoring the situation and has a clear price level in mind.

In short:

• A major token unlock in September is weighing on the XPL price.
• DaanCrypto sees a falling wedge on the 4-hour chart that could become interesting on a breakout.
• A return above $0.09 after the unlock is the key signal to watch for him.

Falling wedge as a possible turning point

On the 4-hour chart of XPL, a falling wedge is visible. This is a pattern in which the price makes increasingly tighter swings within two descending trendlines, which sometimes precedes an upward breakout.

DaanCrypto calls it a potentially attractive situation, but immediately adds a caveat. The upcoming token unlock is currently weighing on the price and makes a sustained rise more difficult for now.

$0.09 is the level to watch

The analyst says he only becomes truly interested when XPL returns above $0.09 after the unlock. On the chart, that level acts as a horizontal resistance zone, visible as the red band around $87 to $89.

Should the price reclaim that zone and manage to stay above it, he would consider taking long positions. As long as the unlock continues to create uncertainty, he is only keeping an eye on the situation for now without taking a concrete position.