Unlocking of $151M in Sui Token this week: Will the Price Remain Stable?

Sui is poised for a significant supply event, with 64.19 million SUI tokens valued at approximately $148.29 million set to be unlocked on April 1. This has raised concerns regarding potential selling pressure and its effect on the price of SUI.

Data from Tokenimist reveals that this unlock accounts for 2.03% of Sui’s (SUI) circulating supply, which currently totals 3.17 billion SUI. However, only 31.7% of the total maximum supply of 10 billion has been released so far, suggesting that further emissions will occur in the future.

Additionally, there has been significant activity within Sui’s decentralized finance ecosystem. Monthly trading volume on decentralized exchanges has reached $5 billion, while the market capitalization of stablecoins has nearly doubled from $370 million in December to $628 million as of March 31.

In the midst of a downturn in the crypto market, Sui’s total value locked has declined from a high of $2.08 billion in January to $1.2 billion, according to data from DefiLlama.

SUI is currently priced at $2.32, aligning with the 20-day simple moving average, facing resistance at $2.37. If the price surpasses this level, the next notable resistance levels are $2.64 and $2.78. The nearest support level below is $2.23, with a potential drop to $2.00 if selling pressure intensifies.

Technical indicators suggest a momentum that is neutral to slightly bearish. The Relative Strength Index stands at 44.5, indicating weak buying interest, while the MACD remains negative, pointing to ongoing selling pressure. Nevertheless, the Stochastic RSI approaches the oversold territory, hinting at a potential short-term rebound.

Following the upcoming token unlock, SUI might experience a period of volatility as traders respond to the increased supply. Should buyers safeguard the $2.23 support, consolidation and a retest of $2.37 could occur. Conversely, a drop below this level may lead to further declines toward $2.00.

Nevertheless, positive developments within the ecosystem, such as Canary Capital’s filing for an SUI-linked exchange-traded fund and the blockchain recently exceeding 100 million total accounts, could enhance sentiment. If buying interest surpasses selling pressure, SUI might break through $2.37 and aim for $2.64 in the forthcoming weeks.