Altcoins News

Story: SUI Price Dips After $162M Token Unlock: Will It Fall Below $3 or Bounce Back?

By Sakamoto Nashi

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SUI Breaks Below Key Support. Over the past month, SUI had been showing strength, moving in an upward trend and forming an…

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Bearish Momentum Builds. According to the daily chart, the breakdown is not just technical.

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Head-and-Shoulders Pattern Adds More Bearish Pressure. Zooming in to the 4-hour chart, another concerning signal has appeared: a head-and-shoulders…

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Is There a Bullish Case?. While the current sentiment leans bearish, it’s worth noting that things could quickly shift in…

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Conclusion. SUI is currently at a crossroads following the $162 million token unlock.

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The price of SUI, the native token of the Sui Network, is under pressure following a significant token unlock that released $162 million worth of SUI into the market.

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This decline comes amid increased volatility and signals that bears are tightening their grip.

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A token unlock involves the release of previously locked tokens into circulation, typically as part of a project's schedule.

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In SUI’s case, the $162 million release added a sizable amount of new tokens into circulation, increasing the risk of supply outpacing demand.

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According to the daily chart, the breakdown is not just technical. Market indicators support a bearish outlook.

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If this downward momentum continues, SUI may fall further toward the next critical support level at $3.07. At the same time, a failure to reclaim the recent high of $3.

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The neckline, previously holding around $3.75, has now been broken, confirming the bearish setup.

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Moreover, the Awesome Oscillator (AO), which tracks momentum shifts, has also turned negative, confirming rising bearish momentum.

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For instance, if bulls manage to defend the $3.50 region and reclaim the neckline at $3.75, the head-and-shoulders pattern could be neutralized.

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It’s also worth noting that the effects of a token unlock tend to be temporary. While they can increase short-term volatility, the market usually absorbs the new supply over…

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