SUI Price Under Pressure: Investors Brace for More Volatility
Data from crypto.news indicates that throughout the past day, the Sui token has decreased by 3.19%. SUI, which is currently trading at $3.28, has been under pressure for the previous few weeks and is down about 19.7% from its peak of $4.16 in August. On August 1 and September 1, Sui encountered issues with the unlocking of big token locks, resulting in the release of roughly 44 million tokens each time. They had respective valuations of about $159 million and $143 million.
Can SUI Overcome Unlock Pressure? Whale Buying and DeFi Growth Say Yes
Large token unlocking events continue to put pressure on the SUI price, while the ecosystem also faces challenges. In the upcoming weeks, though, a few recent events might provide it with the impetus it needs for a possible revival.
Initially, a publicly traded holding company called SUI Group Holdings just acquired an extra 20 million SUI tokens. As a result, its total holdings now stand at 101.8 million SUI, which is worth over $344 million at current market prices. As the business keeps accumulating SUI, the amount in circulation decreases, resulting in scarcity that may sustain increases in the token’s price.
SUI‘s steady expansion in the DeFi sector recently is another element that can support its gains. The total value locked in DeFi protocols on the SUI blockchain has increased from $3 billion two months ago to $3.5 billion as of this writing, according to data from DeFiLlama.
Ascending Triangle Pattern Points to $4.30 Target
Since the start of the year, SUI has been trading within an ascending triangle pattern on the 1-week chart. Building price pressure is indicated by the structure’s rising support trendline and horizontal resistance line. At the time of writing, SUI is trading close to the $3.10 lower trendline, which is an important support level. A bounce back from this area might serve as a launchpad for a move toward $4.30, which would correspond with the pattern’s upper boundary.
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