Sui (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

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

Major cryptocurrency layer 1 network Sui is set for a significant supply event as 64.19 million SUI tokens, valued at approximately $148.29 million, are set to be unlocked on April 1.

This unlock is a part of Sui’s ongoing token release plan and is expected to add 2.03% to the circulating supply, which currently stands at 3.17 billion SUI, according to data from Tokenimist.

However, 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. Monthly decentralized exchange trading volume reached $5 billion, and the stablecoin market capitalization has nearly doubled, advancing from $370 million in December to $628 million as of March 31.

Amidst the crypto market downturn, Sui’s total value locked has decreased, sliding from a peak of $2.08 billion in January to $1.2 billion, as per DefiLlama data.

SUI is currently trading at $2.32, aligning with the 20-day simple moving average, with an impending resistance at $2.37. The next significant resistance levels lie at $2.64 and $2.78 if the price manages to surge above this point. In terms of support, the closest level on the downside is placed at $2.23. A steeper decline could unfold, pushing the price toward $2.00 if the selling pressure intensifies.

Technical indicators are suggesting momentum that is neutral to slightly bearish. The Relative Strength Index, at 44.5, indicates weak buying interest, while the MACD is still in the negative territory, suggesting that the sell pressure is continuing. However, the Stochastic RSI is approaching the oversold area, hinting at a possible short-term price rebound.

Following the upcoming token unlock, SUI may experience a period of brief volatility as traders react to the increased supply. A scenario of consolidation and a retest of $2.37 may unfold if buyers manage to defend the $2.23 support.

However, a break below this mark could lead to additional declines, potentially pushing the price toward $2.00.

Nevertheless, recent positive ecosystem developments, such asCanary Capital’s filing for a SUI-linked exchange traded fund and the blockchain recently surpassing 100 million total accounts, may contribute to improving sentiment.

If buying interest prevails over the selling pressure, SUI could rally from the current levels and test the $2.37 resistance in the upcoming days. A breakthrough above this point could propel the coin toward the next resistance at $2.64.