Sui Token Unlock adn Market Dynamics
On April 1, Sui is set to unlock 64.19 million SUI tokens, valued at about $148.29 million. This event, representing 2.03% of the current circulating supply, has raised concerns about potential selling pressure.Tokenimist data shows this is just a fraction of the total 10 billion maximum supply, with only 31.7% currently in circulation.
Despite these concerns, Sui’s decentralized finance (DeFi) ecosystem shows promise. Monthly decentralized exchange trading volume hit $5 billion. The stablecoin market cap has nearly doubled to $628 million. However, the total value locked in Sui’s DeFi has dropped from $2.08 billion to $1.2 billion due to market downturns.
SUI is trading at $2.32, aligning with the 20-day simple moving average. Key resistance levels are $2.37, $2.64,and $2.78. Support levels are at $2.23 and $2.00. Technical indicators suggest a neutral to slightly bearish trend. The Relative Strength Index at 44.5 indicates weak buying interest. The MACD is negative, but the Stochastic RSI hints at a possible short-term rebound.
Following the unlock, volatility is expected. If buyers hold the $2.23 support, a retest of $2.37 is highly likely. Positive developments, like the SUI-linked ETF filing by Canary Capital and surpassing 100 million accounts, could boost sentiment. If buying interest prevails, SUI may surpass $2.37 and aim for $2.64. The upcoming weeks may see consolidation around $2.37. A break below $2.23 could lead to further declines. Yet, positive news could push SUI past $2.37.
- Monthly DeFi trading volume reached $5 billion.
- Stablecoin market cap grew from $370 million to $628 million.
Traders shoudl watch for a retest of $2.37. Positive ecosystem growth may drive prices higher.Stay tuned for updates.
