Layer-1 blockchain Sui (SUI) is all set to unlock 64 million tokens on October 1, which is 2.40% of the total circulating supply. SUI is witnessing increased interest from investors as the crypto community eagerly awaits the token release.
SUI to not witness a huge setback
While unlocking tokens usually causes high volatility and sometimes a price drop, SUI’s price may not see a huge drop. Let’s find out why.
Notably, SUI’s price has risen 115% in the last 30 days, mainly due to Grayscale’s decision to launch the SUI Trust. Furthermore, the project’s TVL has reached a new all-time high, indicating greater confidence in the altcoin’s potential.
On Tuesday, October 1, the project will unlock 64.19 million tokens, worth more than $100 million. This supply shock is often accompanied by high volatility. However, on the daily chart, Bull Bear Power (BBP), which measures the strength of buyers and sellers, shows that the bulls are in control.
More than $1.73?
Buying pressure is most dominant, implying that SUI’s price could rise higher than $1.73. Moreover, Sui’s volume also increased to $862.48 million.
In general, increasing buying volume pushes the price of a cryptocurrency higher. But for that to continue, volume has to increase. However, if volume decreases as price rises, the uptrend could become weak, which could be followed by a potential reversal.
Interestingly, in the case of SUI, the price has increased by 5% in the last 24 hours and the volume has increased by 122% in the same period. Therefore, the token may witness a sustained rally.
The altcoin continues to show remarkable strength. However, traders should beware of the $1.90 region, which has historically been a crucial level for SUI’s price. For example, when SUI’s price tried to reach $2 in February, it experienced a push basket once it reached $1.90. Currently, the altcoin is approaching the same zone. But now that buying pressure is in place, it is likely to break through the region.
Moreover, the 20-day Exponential Moving Average (EMA) remains above the 50 EMA, indicating that the bullish setup is still in place and the price of SUI may continue to rise.
If buying pressure helps SUI surpass the USD 1.90 resistance, the token could rise towards USD 2.10. However, a wave of profit-taking where traders sell the stock after a price rise could see the value drop to $1.45, negating the bullish forecast.