Sui is set for a major supply event, with 64.19 million SUI tokens worth approximately $148.29 million scheduled for release on April 1, sparking concerns about potential selling pressure and its impact on SUI price.
According to data from Tokenimist, this unlock represents 2.03% of the Sui’s (SUI) circulating supply, which currently stands at 3.17 billion SUI. Nevertheless, only 31.7% of the entire 10 billion maximum supply has been unlocked, indicating that more emissions are expected in the future.
There has also been substantial movement in Sui’s decentralized finance ecosystem. The monthly decentralized exchange trading volume reached $5 billion, and the stablecoin market capitalization has nearly doubled from $370 million in December to $628 million as of Mar. 31.
Amidst the crypto market downturn, Sui’s total value locked has decreased, falling from a peak of $2.08 billion in January to $1.2 billion, as per DefiLlama data.
SUI is currently trading at $2.32, in line with the 20-day simple moving average, with resistance at $2.37. The next important resistance levels are $2.64 and $2.78 if the price rises above this level. The closest support level on the downside is $2.23. A decline to $2.00 might occur if selling pressure increases.
Technical indicators indicate momentum that is neutral to slightly bearish. The Relative Strength Index, at 44.5, shows weak buying interest, while the MACD is still negative, suggesting ongoing sell pressure. However, the Stochastic RSI is getting close to the oversold area, indicating a possible short-term rebound.
Following the impending token unlock, SUI may see brief volatility as traders react to the increased supply. Consolidation and a retest of $2.37 may ensue if buyers protect the $2.23 support. A break below this mark, though, could result in additional declines toward $2.00.
However, positive ecosystem developments like Canary Capital’s SUI-linked exchange traded fund filing and the blockchain recently surpassing 100 million total accounts, may boost sentiment. SUI may surge past $2.37 and test $2.64 in the upcoming weeks if buying interest outweighs selling pressure.
