Analytical article in Yang Capital's commentary series.
Name: SUI Network (SUI)
Current capitalization: 2.37B
Total supply: 10B (SUI)
Sui (SUI) – a Layer 1 project that has raised nearly 400 million USD with a team behind it including talented developers of the Diem project and the Move programming language.
Sui (SUI) confirms bad signals and reasons why it is difficult for SUI to recover in Q2/2024
It can be said that April's price decline has completely broken SUI's price increase structure from the end of 2023 until now. The price has created a new low (Lower Low) with a decrease of nearly 60% since the peak of over 2 USD.
The two lines EMA34 and EMA89 confirmed a negative crossover in April. From here, a downtrend or sideway below the resistance of $1.43 was confirmed.
In recent weeks, SUI recovered to near this resistance and was sold strongly. It is likely that the price has started a new decline, SUI is likely to fall to support 0.89 USD or further to the old bottom at 0.37 USD.
SUI's daily trading volume has also recently decreased sharply, no longer maintaining the average level of 400 million USD - 500 million USD like in the first half of April. 24h SUI volume is less than 200 million USD, which is the daily volume level. lowest of 2024.
Thus, SUI's bottom-catching force is not great. The price line has confirmed bad technical signals, suggesting that SUI's downward trend will not stop soon in April and possibly into May.
Reasons why it is difficult for SUI to recover in Q2/2024
One of the special features in SUI's tokenomics that is different from other Layer 1 projects is that SUI is unlocked daily with only 0 per day.06% of total supply (equivalent to nearly 1 million USD). This has been going on for a long time and is not a big concern for price pressure.
However, this May SUI will face a large unlock of more than 800 million SUI, equivalent to 62.1% of the supply with a value of nearly 1 billion USD. Many investors and holders are concerned that this unlock will seriously affect SUI prices, especially when the Altcoin market in general has not yet recovered.
Conclusion: Binance doesn't allow long posts, so if you need to ask any group, remember to inbox me via ZL/Imess in the comments below! And this Sui has to wait!
