SUI price at risk of decline with upcoming $15.88 million token unlock
- SUI has a 34.62 million token unlock event lined up for November 3.
- With 4% of SUI token supply unlocked this week, the asset is likely to battle intense selling pressure.
- Though SUI fundamentals reveal bullish outlook, the Layer 1 blockchain token is at a risk of price decline.
SUI, a Layer 1 blockchain token, is gearing up for a $15.88 million token unlock event. Token unlock events are typically considered bearish for the asset as they increase selling pressure on the asset. SUI price is likely to decline with 4% of its supply entering circulation this week.
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SUI token unlock scheduled for November 3
Based on data from the tracker token.unlocks.app, smart contract token SUI has an unlock lined up for November 3. 34.62 million tokens worth $15.88 million will be unlocked. Of the unlocked tokens, 34.62 million or 4% of the circulating supply will be assigned to the community access program.
Another 900,000 tokens are assigned to a linear unlock, for 26 days.
SUI token unlock
As the volume of SUI tokens in circulation increases, it contributes to rising selling pressure on the asset. SUI price climbed 7.92% over the past week, breaking out of its multi-month downtrend. The unlock event is set to trigger a trend reversal in the short term.
SUI fundamentals signal bullish strength
While the upcoming token unlock is likely a bearish catalyst for SUI, fundamentals hint at a long-term bullish outlook. In a recent tweet, SUI shared statistics like average daily volume and Total Value Locked (TVL).
The TVL of SUI has climbed consistently over the past month. SUI’s TVL hit $70.29 million, marking a milestone for the Layer 1 blockchain token. Higher TVL is indicative of rising popularity of the asset among market participants.
Average daily volume and TVL continue to soar on Sui, with TVL now at $70M!
— Sui (@SuiNetwork) October 28, 2023
The strong upward trend in TVL reflects a growing trust in the network.
Combined with the increased liquidity and depth of volume, it affirms that the Sui DeFi ecosystem is healthy and robust.❤️ pic.twitter.com/gq2BqJSjLy
The second fundamental catalyst is SUI’s announcement of Atomic Wallet integration. Over 5 million Atomic Wallet users now have access to SUI token and its ecosystem, signaling growth in the Layer 1 blockchain protocol.
Here's a reason to celebrate this Monday: @AtomicWallet is now integrated with Sui. https://t.co/RsTvCl1Kxu
— Sui (@SuiNetwork) October 30, 2023
Despite bullish fundamentals, the technical outlook on SUI price is bearish.
Technical analysis: SUI holders brace for likely decline
SUI price is $0.4538 on Binance. After yielding nearly 8% gains over the past week, SUI is likely headed towards a pullback. As seen in the SUI/USDT one-day price chart below, SUI price is above its two long-term Exponential Moving Averages (EMAs), 10-day at $0.4422 and 50-day at $0.4487.
The Fair Value Gap (FVG) between $0.5531 and $0.5727 acts as a resistance for SUI price. In the event that SUI price crosses the resistance and the gap is filled, the token is likely to resume its downward trend.
The 10-day and 50-day EMAs at $0.4422 and $0.4487 are likely to act as a support.
SUI/USDT one-day price chart on Binance
The Fibonacci Retracement of the decline from SUI’s all-time high at $1.994 in May, to $0.4171 in mid-September marks support for the Layer 1 blockchain token in the event of a correction. If SUI price breaks down support at the 10-day and 50-day EMAs, the asset could hit the $0.4171 level.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
