SUI Fails to Break $3 Resistance—Is a Deeper Correction Looming?

SUI's price action stalls below the $3 psychological barrier as traders eye key support levels. The Layer 1 token's 24-hour trading volume suggests weakening momentum—just as the broader crypto market faces renewed regulatory headwinds.

Technical indicators flash warning signs: The 50-day moving average threatens to cross below the 200-day line, while RSI lingers in neutral territory. 'This looks like distribution before another leg down,' quips a hedge fund trader sipping a $28 oat milk latte.

Market depth charts show thin buy-side liquidity below $2.50. If that level breaks, algorithmic traders could trigger cascading liquidations—because nothing says 'decentralized finance' like bots trading against each other in a death spiral.

The weakness also comes amid a broader cooldown in the crypto market, as several major assets attempt to stabilize following the recent Iran-Israel geopolitical tensions that triggered a sharp sell-off.

Adding to the pressure is Sui Foundation’s latest token unlock, which saw 44 million SUI tokens, worth about $120 million, enter circulation on July 1. The unlock is part of a long-term schedule that adds over 55 million tokens each month through 2030, creating a recurring supply overhang.

SUI’s circulating supply now stands at 3.45 billion, about 34.5% of the 10 billion total supply, with more than 5.2 billion tokens still locked.

Adding to the bearish tone is a decline in open interest in SUI futures, suggesting declining trader conviction. Currently, Open Interest sits at around $1.18 billion, down from a May peak above $2 billion. This fading activity in derivatives trading points to fading confidence among market participants.

For now, downside risk remains, and traders are now watching $2.30 as key support. A decisive move below this level could further deepen losses unless sentiment across the broader crypto market shifts.