This article was first published on The Bit Journal. SUI Price remained under pressure on July 29, trading near $0.68 as investors assessed the impact of the network’s upcoming August token unlock. While concerns over fresh supply have weighed on sentiment, official tokenomics suggest the release is significantly smaller than some market estimates have claimed.
SUI Price Faces Token Unlock Pressure
Sui’s official token release schedule calls for at least 4.052 billion SUI to be in circulation by July and about 4.075 billion SUI by the end of August. This is an increase of approximately 22.2 million SUI worth of approximately $15.1 million at current market rates. This growth amounts to almost 0.55% of the current circulating supply.
The timeline also includes an 13.72 million SUI cliff unlock on August 1. This event is not a release but part of the monthly supply increase. The clarification is relevant due to the fact that the size of the August unlock has been exaggerated during market discussion and has lead to unnecessary worries of daily inflation. While more supply could affect SUI Price in the near future, market sentiment will probably be the determining factor.
Bearish Momentum Continues To Weigh On SUI
SUI Price is still under pressure from a technical point of view. The token has recently broken out of the range of $0.77 and is currently trading below both the 50-period EMA at $0.7289 and 100-period EMA at $0.7569 on the 12-hour chart, indicating that sellers are still dominant.
Trading activity also works in favor of the bearish scenario, as there are more volumes to be seen during the recent bearish timeframe than in the subsequent recovery attempts. In the meanwhile, the Relative Strength Index (RSI) is at 33.49, indicating that the token is near oversold areas. This could suggest the selling pressure is easing, but not necessarily a trend break in SUI Price.
SUI Price Tests Critical Support Zone
The immediate support level is close to $0.676. A break above this range may signal a move towards $0.70 and $0.71, with a more significant rebound towards the 50-period EMA potentially boosting the arguments for a wider recovery. However, the next downside targets will be $0.66 and $0.64 if the support fails.
While the token is on the verge of unlocking, the price of SUI has dropped in the market this time prior to the unlock, indicating that market weakness and careful investor sentiment continue to drive the price of this token.
Conclusion
As the August token unlock nears, SUI Price might continue to be influenced by technical support levels and general crypto market sentiment. The planned supply boost is fair enough, but traders will be keenly eyeing whether they can push back the crucial support level and regain momentum in the coming trading sessions.
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Summary
- SUI Price traded near $0.68 ahead of the August token unlock.
- SUI Price stayed below key EMAs as bearish momentum persisted.
- $0.676 is the key support, with $0.66 as the next downside target.
Glossary of Key Terms
SUI Price: The current trading value of the SUI token.
Token Unlock: Release of locked tokens into circulation.
Cliff Unlock: A one-time scheduled token release.
EMA: A trend indicator based on recent prices.
RSI: A momentum indicator showing market strength.
Support Level: A price area where buying may increase.
Oversold: A condition indicating heavy selling pressure.
Frequently Asked Questions about SUI Price
1. Why is SUI Price declining?
Bearish sentiment and technical weakness are pressuring SUI Price.
2. How many SUI tokens unlock in August?
About 22.2 million SUI will enter circulation during August.
3. What is the key support for SUI Price?
The main support level is $0.676.
4. Can SUI Price recover?
Yes, if buyers hold support and market sentiment improves.
Reference
Disclaimer
The article is purely informational and it is not a financial, investment, or a trading advice. Cryptocurrencies are extremely risky and volatile. Before investing, the readers are to conduct personal research and seek the advice of a qualified financial expert.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
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