Sui Network is set to unlock 58.35 million SUI tokens (worth $164.44 million) on July 1, 2025, representing 1.72% of its total market capitalization. This event has raised concerns about potential sell pressure and short-term price declines. Here’s a detailed analysis of the situation:
Key Implications of the Token Unlock
Market Sentiment:
- Large-scale unlocks often trigger bearish sentiment due to increased token supply.
- Historical resistance levels and current market uncertainty amplify downside risks.
Price Action:
- SUI is trading at $2.72 (down 1.75% in 24 hours), with a 10% drop in trading volume.
- A breakdown below the $2.40 support level could lead to a 10–12% decline.
Technical Indicators:
- SUI remains below the 50-day EMA, signaling a sustained downtrend unless it breaks the descending channel pattern.
- Four-hour candle closes below the ascending trendline may confirm further losses.
Trader Sentiment and On-Chain Data
Short Positions Dominate:
- Traders have established $16.66 million in short positions** at the **$2.848 resistance level.
- Overleveraged longs at **$2.67** ($12.45 million) suggest fragile support.
Exchange Outflows:
- $16.4 million worth of SUI has exited exchanges, hinting at accumulation by long-term holders despite bearish trends.
FAQs
Q1: Why does token unlocking cause price drops?
A: Unlocks increase circulating supply, often leading to sell pressure if holders liquidate their tokens.
Q2: What’s the critical support level for SUI?
A: $2.40 is the next major support; a breach could accelerate declines.
Q3: Are there bullish signals for SUI?
A: A breakout above the descending channel (～$2.85) could reverse the trend, but current metrics favor bears.
Q4: Is now a good time to accumulate SUI?
A: Exchange outflows suggest some investors are buying dips, but caution is advised due to market volatility.
👉 Explore real-time SUI price trends for deeper insights.
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