SUI Token Plummets Below $3.53 Following $162M Unlock Event

SUI's price dropped below the key $3.53 support level after a scheduled $162 million token unlock, representing a 12% decline from its July 28 peak above $4. The unlock introduced significant new supply into the market, disrupting the token's month-long upward trend.

Technical indicators now suggest bearish momentum is strengthening, with the breakdown leading to increased volatility. Early investors may be taking profits from the unlock, raising concerns about SUI's ability to sustain its previous bullish trajectory.

Token unlocks serve as a dual mechanism for crypto projects—intended to align incentives but often resulting in short-term selling pressure. Traders are monitoring whether market demand can absorb the additional supply or if further declines are imminent.