Sui Network is set to unlock 64 million $SUI tokens on January 1: What’s next?
After weeks of bullish momentum in major altcoins, the cryptocurrency market has entered a phase of healthy correction. Nonetheless, Sui Network (SUI), as a leading layer-1 blockchain token, has demonstrated significant resilience, maintaining a 26% increase over the past month. According to CoinMarketCap, the current trading price of SUI is $4.25.
Upcoming token unlock: 64 million $SUI set for January 1
Sui Network is preparing to release 64.19 million $SUI tokens, estimated to be worth around $270 million, as part of its monthly tokenomics plan. This unlock is scheduled for January 1, 2025, and will increase the circulating supply, potentially diluting existing holdings and affecting market dynamics.
This release follows the unlock on December 1, when the same amount of 64.19 million $SUI tokens—worth $224 million at the time—entered the market during the price surge of SUI. The upcoming token release will increase SUI's circulating supply and market capitalization by approximately 2.19%, representing a moderate adjustment that could influence price behavior.
Technical analysis: Symmetrical triangle pattern formation
A review of SUI's 4-hour chart shows the formation of a symmetrical triangle pattern, a structure typically associated with the potential continuation of an asset's prior trend. This suggests that SUI's price may move in the direction of its earlier trajectory.
Currently trading at $4.25, SUI remains above a key support zone. Key indicators present mixed sentiments:
MACD: The histogram is still slightly negative, indicating a decrease in bearish momentum.
RSI: At 39.20, SUI is approaching oversold conditions, though it has not reached extreme levels.
A successful rebound from the current support level may push SUI towards the upper resistance trend line at $4.58. Conversely, failing to maintain this level could lead to a drop to a lower support zone, potentially affecting short-term sentiment.
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