SUI Falls 10% Following $128 Million Token Unlock, Puts Support Levels Under Pressure

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The cryptocurrency Sui (SUI) declined by 10% after a scheduled token unlock worth approximately $128 million, sparking renewed volatility in the market. The sharp move has placed critical support levels under pressure and prompted traders to reassess whether this is the start of a deeper correction or a temporary pullback in a broader bullish trend.

SUI is currently trading between $3.75 and $4.67, with the price having fallen around 13% over the past week. Despite the recent drop, the token has still gained nearly 18% over the past month, suggesting that the broader trend remains uncertain but not entirely bearish. Market watchers have identified $5 as the key resistance level. A successful break above this level could push the price higher towards the next technical target of $5.91, representing a potential increase of more than 25% from current prices.

The Relative Strength Index (RSI), a technical indicator used to measure momentum, currently sits below 50. This suggests a market skewed more towards selling pressure than buying interest. However, technical indicators can be subject to quick change, particularly in a market as volatile as cryptocurrency. The current RSI reading does not necessarily preclude a rebound, especially if broader market sentiment improves or SUI sees renewed interest from investors.

The $128 million unlock released a significant volume of tokens into circulation, increasing supply and likely contributing to the sharp decline. Token unlocks are often scheduled events in the development lifecycle of blockchain projects, typically related to early investor agreements, team allocations, or ecosystem development funding. While such events can pressure prices in the short term, they are not inherently negative, provided the underlying fundamentals remain intact.

SUI, the native token of the Sui Network, has been one of the more closely watched altcoins due to its performance and backing from prominent blockchain development teams. Its recent growth and ability to recover after pullbacks have drawn the attention of both retail and institutional investors. That said, the token’s recent decline highlights the ongoing volatility across the digital asset market.