Date: Fri, Dec 27, 2024, 03:51 AM GMT
The cryptocurrency market is experiencing a healthy correction after weeks of bullish rallies in major altcoins. However, Sui Network (SUI), a prominent layer-1 blockchain token, has shown resilience, retaining an impressive 26% gain over the past 30 days. Currently, SUI is trading at $4.25.
Source: Coinmarketcap
64M SUI Token Unlock Scheduled for January 1
The Sui Network is set to unlock 64.19 million $SUI tokens, valued at approximately $270 million, on January 1, 2025. This unlock is part of the network’s monthly tokenomics plan, which increases the circulating supply and can potentially dilute current investors’ holdings.
Source: Tokenomist
The last major unlock occurred on December 1, when 64.19 million $SUI tokens worth $224 million were released, driven by SUI's recent price surge. The upcoming unlock will expand the token’s circulating supply and market cap by 2.19%, potentially impacting the token’s value dynamics.
What's Next for SUI?
Technical analysis of SUI's 4-hour chart reveals a symmetrical triangle pattern, often viewed as a continuation formation. This suggests the price could break out in the direction of its previous trend.
SUI 4H Chart/ Coinsprobe
Currently, SUI is trading at $4.25, holding strong above a key support zone. Indicators suggest mixed sentiment:
MACD: The histogram is slightly negative, hinting at weakening bearish momentum.
RSI: At 39.20, SUI is approaching oversold levels but hasn’t reached an extreme.
From here, SUI might attempt a reversal toward its upper resistance trendline around $4.58. However, failure to hold the current support zone could see the price drop toward lower support levels, potentially affecting short-term market sentiment.
Final Thoughts
Sui Network’s token unlocks are part of its planned distribution strategy and have not significantly disrupted its price trajectory so far. As the market watches for January's unlock, SUI investors will focus on technical levels to gauge its next move.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.
