Key Takeaways:
Sui unlocked 64.91 million coins on October 1, releasing them into the market. This lot represents 2.40% of the layer-1 blockchain’s token supply.
The last time a token-unlocking event took place on Sui was on September 1, when the network released 61.19 million SUI into circulation. As of today, 27% of all SUI tokens are considered to be unlocked, providing market liquidity.
SUI Records Strong September, Surpassing BASE in Trading Volume and PEPE in TVL
Last week, the price of SUI rose from $1.51 to $1.79 in under 24 hours, and in the days leading to the end of September, its price fluctuated between $1.62 and $1.72. The token has since resumed its upward trend, surpassing $1.80. In the seven days between September 24 and 30, Sui’s price surged by 20%.
Sui’s price performance was strong throughout last month. The surge was directly linked to the announcement that crypto asset manager Grayscale released its Sui Trust fund for investors on September 11.
On that day, the cryptocurrency outperformed popular memecoin Pepe (PEPE) on Binance, recording a 24-hour trading volume of $494.27 million versus PEPE’s $451.22 million.
September also saw SUI become a standout performer in the decentralized finance (DeFi) space, ranking among the top 10 blockchains by Total Value Locked (TVL). As per DeFiLlama data, Sui is currently sitting eight in terms of TVL in DeFi, and the figure has surged by 58.61% over the last 30 days. It reached $979.92 million in the process, recording a new all-time high.
The Sui blockchain also managed to outperform Base, which is one of the fastest-growing decentralized networks in the market. While Base is ranked higher overall, its TVL only grew by 43.37% last month, bringing the blockchain to a valuation of $2.19 billion.
Taking all these factors into account, it is clear that Sui is experiencing heightened investor interest.
How Will SUI Fare In The Market?
Token unlock events are a process by which previously restricted coins are released into circulation. This is often met with high volatility and extreme price declines. However, in the case of SUI, it may not experience a massive drawdown following the distribution event.
Often, the supply shock is caused by high volatility. But when looking at the daily charts, the Bull Bear Power (BBP) – a metric that measures the strength of buyers and sellers, it is clear that bulls are now in control of the SUI market.
There is more buying pressure for the cryptocurrency, suggesting that SUI’s price could jump much higher than $1.72.
Under usual circumstances, an increasing buying volume can push a cryptocurrency’s price higher. But for this trend to continue, the token’s trading volume must also climb. However, if trading volume declines as the price increases, then the uptrend might get weaker, resulting in a potential reversal of gains.
When we look at SUI, the token’s price has increased by 5% over the last 24 hours while the trading volume rose by 122%. This is indicative of the SUI experiencing a continued rally.
A look at the SUI/USDT daily chart shows that the altcoin has remarkable strength. However, traders have been warned about the $1.90 region, which is a crucial price point for the token.
When SUI made an attempt to target $2 back in February, it was met with an immediate pushback at $1.90. The cryptocurrency is fast approaching the same zone and with buying pressure at its peak, it could easily break this region.
Additionally, the 20-day Exponential Moving Average (EMA) of SUI remains above the 50-day EMA, suggesting that the bullish trend is strongly in place and the token’s price will continue to climb.
If the buying pressure helps SUI surpass the $1.90 zone, then its price could hit $2.10. However, the region is likely to be hit by a wave of profit-taking, which could drive its value down to $1.45. This would invalidate the bullish predictions.
At the time of writing, SUI is trading at $1.89 – up 2.64% over the last 24 hours.
Read More: Bitcoin And Major Altcoins Suffer Crash Ahead of October Rally
