SUI Token Price Drops Below $4 Amid Concerns of Deeper Losses
Sui (SUI) is currently facing a challenging period as its price has dropped below the $4 mark. Fading bullish momentum and an upcoming token unlock have raised concerns among investors about the possibility of deeper losses in the near future.
At the time of writing, SUI is down 4.6% in the past 24 hours, trading at $3.67. The token has experienced a significant decline of 16.3% from its peak in July, when it reached $4.30. Furthermore, SUI is now 32% below its all-time high of $5.30, indicating a sustained downward trend in its price.
One of the key factors contributing to the pressure on SUI’s price is the daily token unlocks scheduled for the coming week. These unlocks could potentially increase the circulating supply of SUI tokens, leading to further downward pressure on the token’s price.
The recent decline in SUI’s price is part of a broader market cooldown, with other major cryptocurrencies such as Bitcoin (BTC), Solana (SOL), and XRP (XRP) also experiencing minor losses. This market trend suggests a general fatigue among investors following a weekend rally that has now lost momentum.
In addition to market conditions, SUI has been impacted by its largest-ever token unlock on August 1, which introduced tokens worth $162 million into the market. This unlock is part of a long-term schedule that will gradually increase the token’s total supply through 2030, creating a recurring supply overhang that may continue to weigh on the token’s price.
Despite these challenges, there are still some positive indicators for SUI. Technical analysis suggests that SUI’s price has formed an inverse head and shoulders pattern, which could potentially signal a bullish reversal if the price surpasses $4.45. Institutional activity in SUI is also on the rise, with Nasdaq-listed Mill City Capital recently committing around $316 million to a SUI-focused treasury strategy, indicating a bullish long-term outlook.
Overall, SUI is currently facing downside pressure due to rising supply and weakening market sentiment. However, strong buying activity and renewed investor confidence could help support the token’s price and restore positive momentum in the future. Investors should closely monitor the upcoming token unlocks and market trends to make informed decisions regarding their SUI holdings.