SUI Token Faces Challenges Amid Recent Unlock
Sui [SUI] kicked off the month of June with a token unlock, releasing 44 million tokens into the market, amounting to 2% of the total supply. However, the market response to this influx of new supply has been less than favorable.
Since its peak in early May at $4.15, SUI has experienced a significant drop of nearly 21%. Despite Bitcoin [BTC] reaching new all-time highs, SUI failed to gain momentum and establish solid support levels. Bulls have made multiple attempts to push back against the bearish trend, but each time they have been met with resistance, indicating that the bears are currently in control.
The recent 44 million token unlock has added further uncertainty to the situation. The outcome could swing in one of two directions. If there is a surge in demand from buyers, we may witness a short squeeze that catches shorts off guard. However, if demand remains weak, a deeper retracement is likely, with the possibility of SUI dropping below the $3 mark.
On-chain data from CryptoQuant reveals a growing divide in SUI’s market activity. The 90-day Spot Taker Cumulative Volume Delta (CVD) has turned green for the first time since the “Trump Pump” last year, signaling renewed buying pressure and investor accumulation of SUI. This surge in spot demand was responsible for propelling SUI to its all-time high of $5.36 in January.
Conversely, the Futures Taker CVD has remained consistently red since May 22, indicating persistent selling pressure as shorts bet on further price declines. This divergence sets the stage for a potential bullish scenario, where spot bulls accumulate while futures shorts increase, potentially leading to a short squeeze.
Despite the recent challenges, the 44 million token unlock has helped strengthen bid support for SUI. If demand continues to hold up, SUI could aim to test resistance around $3.50, with a potential push towards $4 in the near future.
In conclusion, SUI faces a critical juncture as it navigates through market volatility and investor sentiment. The outcome of the recent token unlock and the interplay between spot and futures market activity will likely dictate SUI’s price trajectory in the coming days. Stay tuned for further developments in the SUI ecosystem. The COVID-19 pandemic has had a profound impact on the world, affecting nearly every aspect of daily life. From healthcare systems to economies to social interactions, the virus has reshaped the way we live and work. As we navigate through this unprecedented time, it is important to understand the full extent of the pandemic’s impact and how we can move forward in a post-pandemic world.
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