Sui is poised for a significant supply event, with 64.19 million SUI tokens valued at roughly $148.29 million set to be released on April 1, raising concerns regarding possible selling pressure and its effect on the price of SUI.
Based on available information, this upcoming unlock accounts for 2.03% of Sui’s (SUI) circulating supply, which is currently around 3.17 billion SUI. It’s noteworthy, however, that only 31.7% of the total maximum supply of 10 billion has been unlocked, suggesting that further emissions are anticipated in the future.
Furthermore, there has been considerable activity within Sui’s decentralized finance ecosystem. The monthly trading volume on decentralized exchanges hit $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 context of a declining crypto market, Sui’s total value locked has dropped from a high of $2.08 billion in January to $1.2 billion, according to data from a prominent analytics platform.
SUI is presently priced at $2.32, aligning with the 20-day simple moving average, facing resistance at $2.37. Should the price exceed this level, the next significant resistance points are at $2.64 and $2.78. On the downside, immediate support is situated at $2.23. A further decline to $2.00 could happen if selling pressure intensifies.
Technical indicators show a momentum that is either neutral or slightly bearish. The Relative Strength Index, currently at 44.5, indicates weak buying interest, while the MACD remains in negative territory, pointing to ongoing selling pressure. Conversely, the Stochastic RSI is nearing the oversold region, hinting at a potential short-term rebound.
In the wake of the imminent token unlock, SUI may experience some volatility as traders respond to the augmented supply. If buyers defend the $2.23 support, a consolidation phase and retest of $2.37 could follow. However, if this support level is breached, further declines toward $2.00 could ensue.
On a more positive note, promising developments within the ecosystem, such as the filing for a SUI-linked exchange-traded fund and the blockchain exceeding 100 million total accounts, might enhance market sentiment. If buying interest surpasses selling pressure, SUI could rise past $2.37 and test $2.64 in the upcoming weeks.