Unlocking of SUI's $164 million tokens initiates sell-off apprehensions: Prospective price drop imminent?
In the cryptocurrency market, the upcoming token unlock of SUI on July 1, 2025, is expected to release approximately 44 million additional coins worth $120 million into circulation, potentially leading to a significant downward pressure on the price of SUI.
The token unlock, amounting to 1.72% of SUI's total market capitalization, is anticipated to cause an approximate 15.5% price drop, potentially pushing the price down towards a support level near $2.30, which was previously tested in late June.
Current market sentiment is bearish, with SUI trading around $2.68-$2.71 and having already declined roughly 37% from its May peak of $4.29. This downward trend is further exacerbated by technical indicators and a bearish bias.
Moreover, with over 52% of the total SUI supply remaining locked but potentially unlockable in the future, investors should anticipate further potential supply shocks, which may continue to weigh on the price.
Price forecasts from various sources project a short-to-medium term price drop toward critical support levels, with some models predicting dips to around $1.39 before any significant recovery. However, longer-term forecasts remain more optimistic if SUI achieves broader adoption and market penetration.
In the immediate term, the price movement following the token unlock is expected to be bearish, with a likely breakdown or testing of key support near $2.30, increased volatility, and further downside risk before any recovery scenario materializes.
Meanwhile, bears are currently in control and believe that SUI is unlikely to break above the $2.848 level anytime soon. Contrastingly, investors and long-term holders are accumulating, as shown by a $16.40 million worth of SUI outflow from exchanges.
It's important to note that analysts and the market often view such large token unlocks with caution, as they can be a potential source of selling pressure. If SUI closes a four-hour candle below the ascending trendline, it could drop by 10% to 12% to reach the $2.40 level.
Traders should closely monitor SUI's price action, especially as it hovers within a descending channel pattern. As always, it's crucial to conduct thorough research and consider multiple perspectives before making investment decisions.
- The upcoming token unlock of SUI, causing potential selling pressure due to the release of approximately 44 million tokens worth $120 million, aligns with the current bearish market sentiment in finance.
- Despite the bearish outlook, analysts and long-term holders are taking a different perspective, shown by a significant outflow of SUI worth $16.40 million from exchanges, suggesting accumulation.
- In the immediate term, technical analysis indicates that a breakdown or testing of the key support near $2.30 may occur after the token unlock, leading to increased volatility and further downside risk in the cryptocurrency market.
- As staking becomes more prevalent in the crypto world, investors should also consider the potential future unlocks of the remaining over 52% of the SUI supply, which may continue to impact market sentiment and price movements in the long run.
