GRASS Under Pressure: A Token Flood Looms
Price Performance and Unlock Details
Over the past 24 hours, GRASS has already felt the weight of anticipation, declining by 2.9% to around $0.41, underperforming the broader crypto market’s relatively minor dip of 0.56%. The token has plummeted by more than 50% in the last month, reflecting growing unease among investors in the lead-up to this pivotal event. As we move into late 2025, such unlocks are increasingly scrutinised, particularly for tokens with a tangible use case like GRASS, which is leveraged in decentralised AI and data solutions.
The sheer scale of this unlock is the primary concern. The 181 million new tokens will expand the circulating supply by approximately 58%, jumping from 243 million to roughly 424 million. This massive influx raises serious dilution fears, particularly given the current liquidity conditions. Data reveals that trading volume has contracted by over 25% in the past week, suggesting limited demand to absorb the substantial new supply.
Funding Optimism Overshadowed
Earlier this month, GRASS secured a $10 million funding round, spearheaded by Polychain Capital and Tribe Capital, aimed at expanding its decentralised AI data network. This investment, a validation of the project’s DePIN model and its reported 8.5 million active users, should have been a bullish signal. Instead, the news coincided with a 6% drop in GRASS’s value, as investors remained focused on the looming unlock. It’s a classic case of short-term concerns eclipsing long-term potential.
Some analysts believe that the structure of the funding round, which included token allocations, may exacerbate the near-term selling pressure. Even positive developments are being viewed with scepticism, with traders opting to remain cautious until the post-unlock price action stabilizes. In a market saturated with new projects and constant capital rotation, GRASS needs to demonstrate sustained utility and growth to regain investor confidence.
Technical Analysis: A Precarious Position
From a technical perspective, GRASS remains firmly entrenched in a downtrend. It’s trading below all key moving averages, with its 7-day Simple Moving Average (SMA) near $0.4266 and its 30-day SMA at $0.6243. Momentum indicators corroborate this weakness, with the Relative Strength Index (RSI) hovering around 35, signalling oversold conditions. The Moving Average Convergence Divergence (MACD) is attempting a modest bullish crossover, but its strength remains questionable.
Chart patterns indicate a large descending triangle formation, with GRASS precariously positioned near its lower boundary. The next significant support level lies at $0.3126, the 2024 low. Resistance is observed near $0.4694, with a more substantial barrier at $0.9 – the Point of Control (POC) on the Volume Profile indicator. A decisive breakout above this zone could signal the beginning of a recovery, but without a resurgence in trading volume, upside potential will likely remain constrained.
The correlation between Bitcoin’s performance and altcoin behaviour remains a key factor in 2025. Over the weekend, Bitcoin’s strength triggered a brief rally in GRASS, marked by a notable green volume candle. However, this momentum has been short-lived, suggesting that traders remain wary ahead of the unlock. GRASS needs to decouple from Bitcoin’s volatility and establish its own price narrative based on its inherent value proposition.
Post-Unlock Scenarios and the Path Forward
The immediate aftermath of the GRASS token unlock will be critical in determining whether this event triggers a deeper sell-off or provides a clean slate for future growth. A spike in selling pressure could drive GRASS to new lows below $0.31. Conversely, if buyers absorb the incoming supply and the RSI begins to recover, a short-term rebound towards resistance near $0.47 may materialise.
While GRASS’s fundamentals, centred on decentralised AI data infrastructure, remain robust, the market’s primary focus is currently on supply dynamics and investor sentiment. As this wave of tokens hits exchanges, GRASS will need compelling evidence of genuine demand to persuade traders that the worst is behind it.
Looking Ahead: Utility and Adoption are Key
In the hyper-competitive landscape of 2025, projects must demonstrate tangible utility and real-world adoption to thrive. For GRASS, this means expanding its decentralised AI data network, attracting more users, and forging strategic partnerships. The long-term success of GRASS hinges on its ability to translate its technological innovation into tangible benefits for its users and the wider AI ecosystem.
- Focus on expanding the utility of the GRASS network.
- Drive adoption by attracting more users and partnerships.
- Weather the storm of short-term volatility with a strong focus on fundamentals.
- Monitor the immediate post-unlock price action and volume closely.
Ultimately, the market will decide whether GRASS can navigate this critical juncture and emerge as a leading player in the decentralised data space. Until then, caution and informed analysis remain paramount for investors navigating this evolving situation.
