Sui is gearing up for a significant token supply event, with 64.19 million SUI tokens—valued at approximately $148.29 million—scheduled for release on April 1. The large unlock has raised concerns over potential selling pressure and its effect on SUI’s price.
Token Unlock and Market Supply
According to Tokenimist, this unlock represents 2.03% of Sui’s circulating supply, which currently stands at 3.17 billion SUI. However, only 31.7% of Sui’s total 10 billion supply has been unlocked, indicating that further emissions will continue in the coming months.
Despite the upcoming supply increase, Sui’s decentralized finance (DeFi) ecosystem has seen notable growth.
-
Monthly DEX trading volume has hit $5 billion
-
Stablecoin market capitalization has nearly doubled from $370 million in December to $628 million as of March 31
However, Sui’s total value locked (TVL) has fallen significantly due to broader market conditions. TVL peaked at $2.08 billion in January but has since dropped to $1.2 billion, according to DefiLlama.
SUI Price Outlook: Support and Resistance Levels
SUI is currently trading at $2.32, aligning with its 20-day simple moving average (SMA).
Key resistance levels:
-
$2.37 (immediate resistance)
-
$2.64 (higher resistance)
-
$2.78 (strong bullish breakout target)
Key support levels:
-
$2.23 (closest downside support)
-
$2.00 (potential lower support if selling pressure intensifies)
Technical Indicators: Neutral to Slightly Bearish Momentum
-
Relative Strength Index (RSI): 44.5, signaling weak buying interest
-
MACD: Negative, indicating ongoing sell pressure
-
Stochastic RSI: Approaching oversold territory, suggesting a possible short-term rebound
Possible Market Scenarios Post-Unlock
The April 1 unlock may cause short-term volatility as traders react to the increased supply. If buyers defend the $2.23 support, SUI may consolidate and attempt a retest of $2.37. However, a break below $2.23 could drive prices lower toward $2.00.
Despite concerns over selling pressure, positive ecosystem developments could help counterbalance the supply increase:
-
Canary Capital’s recent ETF filing for a SUI-linked exchange-traded fund
-
Sui blockchain surpassing 100 million total accounts, signaling strong user adoption
If buying interest outpaces selling pressure, SUI could break past $2.37 and aim for $2.64 in the coming weeks.
For more updates on Sui and crypto market trends, visit TheCoinInfo.
