SUI Token Faces $166M Unlock as Price Drops Toward 50-Day EMA at $3.49
SUI (SUI), a layer-1 blockchain token, is under pressure as price drops 2% midweek, its third day in a row.
Quick overview
- SUI token is experiencing a 2% price drop for the third consecutive day, driven by an upcoming unlock of 44 million tokens worth $166.3 million.
- The increase in circulating supply has led to cautious market sentiment, with large token unlocks typically triggering sell-offs.
- Market data indicates weakening confidence, with Open Interest dropping from $2.41 billion to $2.30 billion in just 24 hours.
- Technically, SUI is approaching the 50-day EMA at $3.49, and if it closes below this level, it may drop further to the 200-day EMA at $3.16.
SUI (SUI), a layer-1 blockchain token, is under pressure as price drops 2% midweek, its third day in a row. At the heart of this bearish run is an upcoming unlock of 44 million SUI tokens, worth $166.3 million, on Friday. This will increase the circulating supply by 1.28%, already causing the market to get cautious.
Large token unlocks tend to trigger sell-offs as holders cash out early. Some of the new supply might go into DeFi or long term holdings but the immediate impact is usually negative for price action.
Derivatives Market Signals Weakening Confidence
Market data shows the bearish sentiment. According to CoinGlass, SUI’s Open Interest has dropped to $2.30 billion from $2.41 billion in 24 hours, a $110 million outflow. This is a capital flight from futures and options markets, showing reduced trader engagement and confidence.
More of this:
- $4.53 million in longs liquidated in the last 24 hours
- $287,440 in shorts liquidated
- Long/Short ratio 0.9309, bearish
Clearly more people are positioning for a drop not a bounce.
Price Outlook: Eyes on 50-Day EMA
Technically, SUI has broken below $4.00 and is heading towards the 50-day EMA at $3.49. Indicators are bearish especially the MACD which crossed below the signal line on Monday, a sell signal. RSI is neutral at 51 but trending down, showing weakening buying momentum.
If SUI closes below $3.49, it may go to the 200-day EMA at $3.16. If it bounces from the 50% Fibonacci retracement at $3.54, it may retest $4.00.
Investor Takeaways:
- Price Direction: 3-day losing streak; approaching 50-day EMA
- Token Unlock: 44M SUI tokens ($166.3M) to be released Friday
- Overall: Open Interest down, bearish
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save