SUI price could record a new peak as SUI incentivizes community access program
- Sui price remains above midline of an ascending parallel channel with technicals flashing bullish.
- SUI could extend the gains 15% to clear the March 27 high of $2.1829.
- 34.62 million SUI tokens worth nearly $67 million are due for unlock on Wednesday.
Sui (SUI) price is trading with a bullish bias despite the mucky waters seen in the Bitcoin (BTC) price. It continues to abide within a bullish technical formation, with prospects for more gains as the network gears up for a positive development.
Also Read: SUI TVL reaches all-time high above $720 million as markets anticipate Sui Basecamp
SUI Community Access Program incentive could catalyze rally
The Sui network has a token unlock event scheduled for April 3, in which 34.62 million SUI tokens worth $66.8 million (at current rates) will be allocated toward the network’s community access program. The tokens comprise 2.7% of the ecosystem’s circulating supply.
SUI token unlocks
A token unlock event toward a community access program means they are being made accessible to the community for various purposes. This could include allowing community members to participate in governance decisions, stake their tokens for rewards, or use the tokens within the project's ecosystem.
By unlocking tokens to the community, the project aims to increase decentralization, community engagement, and overall participation in the project's growth and development. These are bullish fundamentals that could bode well for Sui price.
Sui price outlook ahead of massive token unlock
As the Sui price continues to hold above the midline of the ascending parallel channel, multiple technical indicators suggest a bullish outlook. For starters, the Relative Strength Index (RSI) continues to record higher highs and higher lows, suggesting rising momentum.
The RSI is also moving above the yellow band of its signal line, while the volume indicator displays a huge bar. These bullish nuances are accentuated by the growing volumes of the Awesome Oscillator (AO), reinforcing the bullish thesis.
Increased buying pressure could see Sui price breach the resistance at $2.1829 to record a higher range high above it, potentially nicking the $2.5000 threshold.
There is also robust support to the downside as the 50, 100, and 200-day Simple Moving Averages (SMAs) trailing the Sui price from below, providing possible turnaround points in case SUI bulls need to refresh.
SUI/USDT1-day chart
On the flip side, if selling pressure increases, Sui price would drop, losing the support due to the centerline of the channel and potentially extending a leg down to the confluence between the 50-day SMA and the horizontal line at $1.6964.
A break and close below this level on the daily time frame would invalidate the bullish thesis.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
