Sui Price Alert: SUI Slips as 44M Token Unlock Looms – Is a Sell-Off Inevitable?
Fear hits the Sui (SUI) market as traders brace for a potential flood of tokens. With 44 million SUI set to unlock soon, the crypto's price wobbles—classic 'buy the rumor, sell the news' behavior. Here's the breakdown.
Why This Unlock Matters
Token unlocks often trigger volatility. More supply hitting the market can mean downward pressure—unless demand steps up. For SUI holders, it's a waiting game: will buyers absorb the new tokens or bail?
The Trader's Dilemma
Crypto markets hate uncertainty. Some investors front-run the unlock, selling early to avoid potential losses. Others see a dip as a buying opportunity. Either way, liquidity's about to get a stress test.
Finance's Oldest Lesson
Remember: in crypto, as in traditional markets, timing beats guessing. That said—when has caution ever stopped a degens from YOLOing into volatility?
44 million SUI tokens to be unlocked on Friday
In accordance with the SUI roadmap, 44 million SUI tokens worth $166.30 million will be unlocked on Friday. The unlock will increase the circulating supply by 1.28%.
Sui token unlock data, Source: Tokenomist
Typically, a token unlock event increases the risk of a supply dump in the market, as investors may consider booking profits from the unlocked tokens. However, if the investors' confidence holds steady, the unlocked supply could be redirected to Decentralized Finance (DeFi) services or held for capital appreciation.
Token unlock fear seeps into SUI derivatives
CoinGlass’ data shows the SUI Open Interest at $2.30 billion, down from $2.41 billion on Tuesday. This $110 million capital outflow from the SUI futures and options contracts suggests a decline in traders’ interest in the token.
The liquidation data reveals $4.53 million in long liquidations compared to $287.44K in shorts in the last 24 hours, indicating a greater wipeout of bullish positions. Adding credence to bearish dominance, the long-to-short ratio stands at 0.9309, meaning that more traders are in short positions.
Sui derivatives data. Source: Coinglass
SUI risks retesting 50-day EMA
SUI extends the declining trend under the $4.00 mark with its third consecutive bearish candle, erasing the gains from last week. The layer-1 altcoin inches closer to the 50-day EMA at $3.49 as the Relative Strength Index (RSI) is close to neutral levels at 51 but points downwards, indicating a decrease in buying pressure.
Investors may consider increasing bearish exposure as the Moving Average Convergence Divergence (MACD) crossed below its signal line on Monday, signaling a potential sell.
A decisive close below the mentioned 50-day EMA could test the 200-day EMA at $3.16.
SUI/USDT daily price chart.
On the flip side, a bounce back from the 50% Fibonacci level at $3.54, drawn from $5.36 on January 6 to $1.71 on April 7, could retest the $4.00 level.
