TLDR
- 64.19 million SUI tokens worth approximately $151M will be unlocked on April 1
- This unlock represents 2.03% of Sui’s circulating supply of 3.17 billion SUI
- SUI’s DeFi ecosystem shows growth with $5 billion in monthly DEX trading volume
- Total Value Locked (TVL) has declined from $2.08 billion in January to $1.2 billion
- SUI currently trades at $2.32 with key resistance at $2.37 and support at $2.23
Sui blockchain is preparing for a major token unlock event that could impact its price movement in the coming days. On April 1, approximately 64.19 million SUI tokens worth around $151 million will be released into circulation, according to data from Tokenimist.
This significant unlock represents 2.03% of Sui’s current circulating supply of 3.17 billion SUI tokens. Only 31.7% of the maximum supply of 10 billion tokens has been unlocked so far, indicating that more emissions are expected in the future.
The token unlock comes at a time when the broader crypto market has been experiencing a downturn. This situation has raised concerns among investors about potential selling pressure that could affect SUI’s price in the short term.
Despite market challenges, Sui’s decentralized finance ecosystem has shown growth in certain areas. Monthly decentralized exchange (DEX) trading volume has reached $5 billion, showing active trading within the network.
The stablecoin market capitalization on Sui has nearly doubled over the past few months. It grew from $370 million in December to $628 million as of March 31, indicating growing utility within the ecosystem.
Market Performance and Technical Analysis
SUI is currently trading at $2.32, aligning with its 20-day simple moving average. The token faces immediate resistance at $2.37, with further resistance levels at $2.64 and $2.78 if the price moves higher.
On the downside, the closest support level is at $2.23. If selling pressure increases following the token unlock, SUI could potentially decline toward the $2.00 level.
Technical indicators suggest a neutral to slightly bearish momentum. The Relative Strength Index (RSI) stands at 44.5, showing weak buying interest among traders.
The Moving Average Convergence Divergence (MACD) remains in negative territory. This indicates ongoing selling pressure in the market for SUI tokens.
However, the Stochastic RSI is approaching oversold territory. This could potentially signal a short-term rebound in price after the token unlock event.
Positive Developments and Future Outlook
Despite short-term concerns about the token unlock, several positive developments may support SUI’s longer-term prospects. Canary Capital has filed for a SUI-linked exchange-traded fund (ETF), which could boost investor confidence.
The Sui blockchain recently reached a milestone of surpassing 100 million total accounts. This achievement highlights growing adoption of the network’s technology.
Following the token unlock, SUI may experience brief volatility as traders react to the increased supply. If buyers defend the $2.23 support level, the token could consolidate and retest the $2.37 resistance.
A break above resistance could potentially lead to tests of higher levels at $2.64 in the coming weeks. This would depend on whether buying interest outweighs the selling pressure from the newly unlocked tokens.
Conversely, if the token breaks below the $2.23 support level, further declines toward $2.00 may occur. Traders should be prepared for increased volatility around the unlock date of April 1.
The token unlock represents just one factor among many that could influence SUI’s price. Market sentiment, overall crypto market conditions, and ecosystem development will also play important roles in determining its future performance.
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