SUI: Will it hold steady? 
2024-10-29

This week, SUI is set to release 64.19 million tokens, valued at over $100 million, as part of a scheduled token unlock. This influx represents 2.32% of SUI’s circulating supply, sparking speculation on how this event may impact the token’s price.

With a current market cap of approximately $4.6 billion and a circulating supply of 2.76 billion tokens, it stands at a critical juncture as it prepares to navigate the effects of this release.

As the 64.19 million SUI tokens become liquid, there is potential for increased selling pressure. This is common during token unlocks when early investors and team members gain access to previously locked assets.

Given that this unlock represents over 2% of the circulating supply, a substantial number of these tokens entering the open market could exert downward pressure on SUI’s price if holders decide to sell.

In the event of a selloff due to the unlock takes place, SUI’s price may test critical support levels. The 50-day moving average at $1.69 serves as the immediate support level.

If breached, it could lead to further declines toward the $1.50 mark, where buyer interest might strengthen.

Historical patterns from previous unlocks indicate that such events can heighten market volatility as traders react to the sudden increase in supply.

If it fails to maintain its current price levels, it may experience a short-term struggle for recovery. Conversely, if it can remain above the 50-day moving average, this could encourage buyers to reenter the market.
