- $265 million worth of SUI tokens are set to unlock this week, potentially increasing market selling pressure.
- Despite this, strong on-chain metrics and recent growth suggest Sui could absorb the new supply and maintain its rally.
This week, the Sui network faces a pivotal moment as $265 million worth of SUI tokens are set to be unlocked on May 1. While this major event could increase the circulating supply by 2.28%, the real question is whether the token’s recent 61% rally will hold under the pressure of new market dynamics.
The scheduled unlock will release approximately 74 million SUI tokens, adding to the existing circulating supply. Currently, only 33% of the total SUI supply has been made available, and this new batch could prompt selling as traders look to capitalize on recent gains. The timing is critical; after a substantial price jump, the market could be in for a shake-up as some investors might choose to liquidate their positions.
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However, despite this potential selling pressure, Sui’s underlying fundamentals remain strong. The total value locked (TVL) in Sui-based decentralized finance (DeFi) protocols has surged 40% since early April, now standing at a robust $1.73 billion, according to DeFiLlama. Stablecoin market cap on the network has also climbed from $630 million to $880 million over the same period, further signaling increased adoption.
In addition, Sui’s daily decentralized exchange volume is averaging around $500 million, and the network recently surpassed $3.6 billion in trading volume over the past seven days. This increased activity, coupled with positive momentum in key metrics, suggests that the market might absorb the unlocked tokens without a major downturn.
At the time of writing, Sui is trading around $3.62, having broken through the crucial $3.30 resistance zone. The relative strength index (RSI) stands at 78, signaling that the token might be overbought in the short term, but bullish indicators such as the moving average convergence/divergence (MACD) remain in positive territory. If buying pressure holds, SUI could attempt to push toward the psychological $4.00 mark.
On the flip side, should selling pressure increase due to the unlock, SUI might retrace to $3.30, with further support at $3.00. If the market successfully absorbs the additional supply, the token could stabilize between $3.30 and $3.60 before setting a new trend.
With a combination of strong on-chain metrics and the looming unlock, all eyes are on how Sui will navigate this critical week.