TLDR
- $151 million worth of SUI tokens (64.19 million) set to unlock on April 1
- This represents 2.03% of current circulating supply (3.17 billion SUI)
- SUI currently trading at $2.32 with resistance at $2.37 and support at $2.23
- DeFi activity growing with $5 billion monthly DEX trading volume despite TVL decline
- Positive developments include Canary Capital’s ETF filing and 100 million total accounts milestone
A major supply event is coming for the SUI token. On April 1, about 64.19 million SUI tokens worth approximately $151 million will enter circulation. This unlock event has raised questions about possible market impacts.
The upcoming release represents 2.03% of SUI’s current circulating supply of 3.17 billion tokens. So far, only 31.7% of the maximum supply of 10 billion SUI has been unlocked. This means more token emissions will happen in the future.
SUI is trading at $2.32, matching its 20-day simple moving average. The token faces immediate resistance at $2.37. If the price moves above this level, the next resistance points are at $2.64 and $2.78.
SUI Price
On the downside, support exists at $2.23. If selling pressure increases and this support breaks, SUI could fall toward the $2.00 mark. Previous token unlocks in the crypto market have often led to price drops due to increased supply pressure.
Technical indicators show mixed signals. The Relative Strength Index (RSI) sits at 44.5, indicating weak buying interest. The Moving Average Convergence Divergence (MACD) remains negative, suggesting continued selling pressure.
The Stochastic RSI is approaching oversold territory. This could signal a potential short-term bounce in price. Traders should watch these indicators for possible trend changes.
SUI DeFI Sector
Despite market concerns, SUI’s decentralized finance (DeFi) ecosystem shows growth. Monthly trading volume on SUI-based decentralized exchanges has reached $5 billion. This high volume points to active trading and usage within the ecosystem.
The stablecoin market capitalization on SUI has grown from $370 million in December to $628 million as of March 31. This increase shows expanding utility within the SUI ecosystem.
However, not all metrics are positive. Total Value Locked (TVL) in SUI has fallen from a January peak of $2.08 billion to around $1.2 billion. This decline suggests reduced liquidity in the ecosystem.
The upcoming token unlock will likely trigger short-term volatility. Market participants may react to the increased supply by selling, which could push prices lower. If buyers defend the $2.23 support level, we might see sideways consolidation around $2.37.
Several positive developments may support SUI’s long-term growth. Investment firm Canary Capital has filed a registration statement for a SUI-related exchange-traded fund (ETF). This move could boost investor confidence in the token.
The SUI blockchain recently passed 100 million total accounts. This milestone highlights growing adoption of the network. If buying interest increases, SUI could break above the $2.37 resistance and target $2.64 or higher.
Traders should approach with caution due to the token unlock event. The release of new tokens could create unpredictable price movements in the near term. Previous unlock events in the crypto market have typically led to increased volatility.
Market reactions will depend on whether large token holders decide to sell their newly unlocked tokens. If they hold, price impact may be minimal. If they sell in large volumes, downward pressure could increase.
