SUI To Unlock 64 Million Tokens, Can It Witness A Continued Rally?
Layer-1 blockchain Sui (SUI) is all geared up to unlock 64 million tokens on October 1, which is 2.40% of the total circulating supply. SUI is witnessing heightened investor interest as the crypto community eagerly awaits the token release.
SUI To Not Witness Massive Drawdown
While token unlocks usually drive high volatility and sometimes price decline, but SUI’s price might not see a massive drawdown. Let us find out why.
Notably, SUI’s price has increased by 115% in the last 30 days, mostly due to Grayscale’s decision to launch the SUI Trust. Moreover, the project’s TVL has reached a new all-time high, suggesting boosted confidence in the altcoin’s potential.
On Tuesday, October 1, the project will unlock 64.19 million tokens, valued at over $100 million. Often, this supply shock accompanies high volatility. However, on the daily chart, the Bull Bear Power (BBP), which measures the strength of buyers and sellers, reveals that the bulls are in control.
Beyond $1.73?
Buying pressure is the most dominant, implying that SUI’s price could bounce higher than $1.73. Furthermore, Sui’s volume has also increased to $862.48 million.
Generally, increasing buying volume pushes a crypto price higher. But for that to continue, the volume must climb. If, however, the volume declines as the price rises, then the uptrend might become weak, which could be followed by a potential reversal.
Interestingly, In SUI’s case, the price has increased by 5% in the last 24 hours and the volume rose by 122% within the same period. Therefore, the token might witness a continued rally.
The altcoin continues to show remarkable strength. However, traders need to watch out for the $1.90 region, which is historically a crucial level for SUI’s price. For instance, when SUI’s price attempted to hit $2 in February, it experienced a push bask as soon as it reached $1.90. Currently, the altcoin is approaching the same zone. But with buying pressure present, it is likely to breach the region.
Additionally, the 20-day Exponential Moving Average (EMA) remains above the 50 EMA which suggests that the bullish setup is still in place, and SUI’s price can continue to appreciate.
If buying pressure helps SUI transcend the $1.90 resistance, the token may ascend to $2.10. However, a wave of profit-taking where traders sell the stock after a price rise could drive its value down to $1.45, overturning the bullish prediction.
