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Major Token Unlocks Ahead
The crypto market is on high alert as two significant token unlock events for Sui (SUI) and Solana (SOL) approach, with over $250 million worth of tokens set to be released. These events, slated for early July, could introduce considerable short-term volatility and shift market sentiment for both Layer-1 assets.
SUI Network Set for Major Unlock on July 1
On July 1, the Sui Network will unlock approximately 58.35 million SUI tokens, equating to 0.58% of the token’s total supply. At current market prices, the unlocked tokens are valued at around $178.53 million — approximately 1.71% of SUI’s market capitalization, according to data from CryptoRank.
SUI is currently trading near $3.06, testing the 0.382 Fibonacci retracement level at $3.0224. This level could act as a near-term support, but failure to hold this line may prompt a decline toward the 0.5 Fibonacci level at $2.8556 and potentially the 0.618 level at $2.6887.
The Balance of Power (BoP) indicator has recently surged to 0.30, indicating buyer dominance; however, the reading remains fragile, and selling pressure from the unlock could reverse the trend quickly. Furthermore, SUI has failed to break resistance at $3.22 (Fib 0.236), suggesting bullish momentum is waning. A break below the $3 threshold may confirm further downside risks.
Solana Eyes Upside Despite Unlock Pressure
Solana will also face two notable unlocks from the FTX estate: 12,700 SOL (approximately $1.99 million) on July 1, followed by a much larger release of 472,990 SOL worth around $74.06 million on July 7.
Despite the bearish implications of increased supply, technical analysts remain cautiously optimistic. Notably, the analyst group World of Charts highlights that SOL is currently consolidating within a bullish pennant formation. A breakout from this structure could propel SOL toward the $185 resistance level. Should the price secure a daily close above this mark, it could clear the path toward a psychological and technical target of $250.
Market Outlook
While these token unlocks carry the potential to disrupt short-term price stability, they may also offer new trading opportunities for those closely monitoring support and resistance levels. Investors are advised to remain vigilant and prepared for increased market fluctuations as these events unfold.
