1INCH: As token unlock approaches, is a price correction in the works?

ambcrypto.com:

1inch Network [1INCH] will unlock new tokens on 5 April 2023, which will increase its circulating supply. As per Token Unlock, over 287,000 1INCH tokens worth $149,585 will be unlocked, accounting for 0.019% of the total supply. As of now, nearly 37% of 1INCH’s total supply worth $288.88 million is locked, which will be released over time. 

Source: Token Unlock

Read 1inch Network’s [1INCH] Price Prediction 2023-24

Generally, an increase in circulating supply is followed by a decline in price. This happens due to the demand and supply theory, as an increase in the former causes a decline in the latter, leading to price declines.

1INCH’s price recently favored the bulls again as its price increased by over 4% over the last seven days. At the time of writing, it was trading at $0.5178, with a market capitalization of over $428 million. With the new token unlock, is a trend reversal inevitable?

CryptoQuant’s data revealed that despite the price increase, 1INCH’s exchange reserve was rising, suggesting higher selling pressure. The number of active wallets used to send and receive coins also declined, which is by and large a negative signal.

As per Santiment, 1INCH’s MVRV Ratio declined slightly, which looked bearish. Investors’ sentiments around 1INCH also took a blow, as evident from the network’s weighted sentiments. It was, however, interesting to note that despite negative sentiments, 1INCH made its way onto the list of the top BNB Chain projects by social volume.

Source: Santiment

A few on-chain metrics also revealed the decreased interest of investors in holding the token. For instance, 1INCH’s supply held by top addresses declined considerably. Not only that, but 1INCH’s supply on exchanges shot up, which is a bearish