SUI Price Rises 120%, But Insider Selling Claims Raise Concerns
Sui (SUI), a layer 1 blockchain protocol, has outperformed the top 10 cryptocurrencies with a 120% growth over the previous 30 days, reaching a new all-time high of $2.35 on October 13.
Due to suspicions of insider selling among project partners, the token has fallen about 5% from its high.
Is SUI as Successful as Solana?
SUI's recent gains may not last, market specialist LightCrypto said on X (previously Twitter) on Sunday. He wrote about SUI's quintupling from $0.5 on August 5 during the market fall in a long piece.
The expert first questioned SUI's $23 billion fully diluted value (FDV), compared to Solana's $73 billion according to Coingecko statistics.
LightCrypto suggested that SUI cannot emulate Solana's success since it trades at 25% of Solana's market capitalization.
The expert asked the community to provide a convincing risk-reward scenario to justify such a discrepancy, questioning whether SUI had shown even a percent of Solana's potential.
Possible Market Correction
Second, LightCrypto said that insiders, notably a significant endowment fund, sold $400 million in tokens during the recent rise.
The analyst added that this selling pattern has continued since lower values and higher prices.
LightCrypto thinks that the rapidity of these transactions may unnerve regular investors, who may be purchasing tokens from individuals who know their genuine worth.
As these alleged insiders cash out and regular investors follow momentum, a market downturn might undermine the token's ascent.
SUI, priced at $2.24, continues to attract investors, with trading volume up 36% on Sunday and worth $1.7 billion.
No matter LightCrypto's worrying results, declines are usual once a token sets a new record high, as shown with Bitcoin (BTC), which hasn't been close to $73,7000 since.
If the expert is right, it might worsen an SUI price decline, with the first key support level for bulls being $2.046.
