SUI Token Unlock Event Could Impact Its Price Movement

Sui blockchain is preparing for a major token unlock event that could impact its price movement in the coming days.

The price of Sui (CRYPTO: SUI) could be affected by a major token unlock event that is set to take place on April 1. According to data from Tokenimist, approximately 64.19 million SUI tokens, worth around $151 million, will be released into circulation. This significant unlock represents 2.03% of Sui’s current circulating supply of 3.17 billion SUI tokens.

Out of a maximum supply of 10 billion tokens, only 31.7% has been unlocked so far. This indicates that more emissions are expected in the future. The token unlock comes at a time when the broader crypto market has been experiencing a downturn. This situation has raised concerns among investors about potential selling pressure that could affect SUI’s price in the short term.

However, despite market challenges, Sui’s decentralized finance ecosystem has shown growth in certain areas. Monthly decentralized exchange (DEX) trading volume reached $5 billion, showcasing active trading within the network. Additionally, the stablecoin market capitalization on Sui nearly doubled over the past few months, growing from $370 million in December to $628 million as of March 31, highlighting increasing utility within the ecosystem.

As the token approaches the April 1 unlock, it is currently trading at $2.32, aligning with its 20-day simple moving average. The token faces immediate resistance at $2.37, with further resistance levels at $2.64 and $2.78 if the price moves higher.

On the downside, the closest support level is at $2.23. If selling pressure increases following the token unlock, SUI could potentially decline toward the $2.00 level.

Technical indicators suggest a neutral to slightly bearish momentum. The Relative Strength Index (RSI) stands at 44.5, indicating weak buying interest among traders. The Moving Average Convergence Divergence (MACD) remains in negative territory, which signifies ongoing selling pressure in the market for SUI tokens. However, the Stochastic RSI is approaching oversold territory, which could potentially signal a short-term rebound in price after the token unlock event.

Several positive developments may support SUI’s longer-term prospects despite short-term concerns about the token unlock. Canary Capital has filed for a SUI-linked exchange-traded fund (ETF), which could boost investor confidence. Moreover, the Sui blockchain recently reached a milestone of surpassing 100 million total accounts, highlighting growing adoption of the network’s technology.

Following the token unlock, SUI may experience brief volatility as traders react to the increased supply. If buyers manage to defend the $2.23 support level, the token could consolidate and retest the $2.37 resistance. A break above resistance could potentially lead to tests of higher levels at $2.64 in the coming weeks. This scenario would depend on whether buying interest prevails over the selling pressure from the newly unlocked tokens.

Conversely, if the token breaks below the $2.23 support, further declines toward $2.00 might occur. Traders should be prepared for increased volatility around the unlock date of April 1.

The token unlock represents just one factor among many that could influence SUI’s price. Market sentiment, overall crypto market conditions, and ecosystem development will also play crucial roles in determining its future performance.