SOON Price Drops 26% Ahead of Unlock – Is There a Bigger Slide Coming?

The price of Soon (SOON) fell 26% on November 16, with traders anticipating a significant token unlock. The decline indicates increasing bearish sentiment, driven by negative funding rates and a substantial liquidity exit.

Key Takeaways

A decrease in funding rates and a liquidity exit of $6.29 million reveal a surge in bearish positions ahead of the token unlock worth $31 million.
A decline below $1.94 could lead to a more extensive drop, while maintaining this price level may provide temporary stability.

Soon (SOON) experienced a sharp decline on November 16, as bears pushed the price down significantly. According to CoinMarketCap, the cryptocurrency saw a daily loss of 26%, making it one of the day's largest losers. This dip has left market sentiment fragile, suggesting that traders should prepare for potential increased volatility.

Selling Pressure Fueled by Upcoming Unlock

The recent downturn in SOON is closely tied to the anticipated unlock of tokens. On November 23, 15.21 million tokens—around 4.3% of the total circulating supply—are set to be released, valued at approximately $32 million.

This sizeable unlock is expected to heavily impact the price, especially given the currently weak demand in the market.

SOON token unlock

Despite being scheduled for the 23rd, the sell-off reflects that investors are taking precautions to avoid being caught in a potential downturn.

Bearish Sentiment Dominates Derivatives Market

In the derivatives market, investors are aggressively selling. The Funding Rate, a key indicator that shows whether bullish or bearish traders are paying more in funding, has turned significantly negative—with a reading of -1.1307%. This trend indicates that bears have taken control, suggesting that SOON's price may continue to decline.

SOON funding rate chart.

The derivatives market has also faced a marked liquidity decline, with CoinGlass reporting a $6.29 million exit, leaving around $48 million in circulating liquidity. Out of this, $2.39 million came from liquidated positions, while the remaining $3.9 million exited as investors chose to close their positions, aligning with the recent sell-off linked to the upcoming unlock.

What Lies Ahead for SOON?

Currently, SOON is trading at the support level between $2.00 and $1.94, a range that has remained firm since November 7. The 4-hour chart indicates frequent reactions at this level, although bearish momentum has increased as of November 16.

SOON price chart.

Should SOON close decisively below the $1.94 mark, it could trigger a more severe downturn. However, if it maintains this level, the price might stabilize during the token unlock or even stage a short-term recovery.