SUI Could Target $0.4140 If Token Unlocks Fuel Sell Pressure

Sui (SUI) has experienced a major slip in its price over the past 24 hours, and many believe it is due to the massive amounts of SUI that will be unlocked in the coming week and the rest of October. The scheduled unlock will release nearly 35 million SUI tokens into the market, with a total value exceeding $17 million, according to an X post shared by Token Unlocks.

According to CoinMarketCap, SUI was trading hands at $0.4605 at press time, after its price fell by about 7.30% in the past day alone. This meant that SUI was trading just above its 24-hour low price of $0.4575 after it was able to set a high price of $0.498 during the same time period.

SUI’s 24-hour trading volume, however, stood at $89,395,202 after it experienced a more than 6% rise throughout the past day. Despite the price knock the altcoin took in the past 24 hours, its price was still up by 4.08% in the weekly time frame.

Daily chart for SUI/USDT (Source: TradingView)

SUI dropped just over 8% during yesterday’s trading session. As a result, the altcoin plummeted from an opening price of $0.5071 to close yesterday’s daily candle off at $0.4663. Furthermore, the sharp decline in the cryptocurrency’s price forced it below both the 9-day and 20-day EMA lines, where it continued to trade at press time.

A short-term bullish technical flag was triggered between these two technical indicators when the 9-day EMA line rose above the 20-day EMA line. SUI’s price then attempted to rise to as high as the next resistance level at $0.5300, but bears were quick to defend the mark, resulting in the strong price drop seen yesterday.

Consequently, the bullishness that resulted from the recently-triggered technical flag was short-lived. At press time, the 2 EMAs were looking to cross again, but this time in favor of sellers. Should the shorter EMA break below the 20-day EMA line, then it may suggest that sellers have the upper hand. This could then be followed by SUI’s price dropping further.

If this bearish thesis plays out, the altcoin’s value could fall to the immediate support level in the next few days. In this scenario, SUI could drop to as low as $0.4140. The bearish thesis could be invalidated if SUI closes a daily candle above the 9-day EMA line at around $0.4643 within the next 48 hours.

Should the cryptocurrency succeed in closing a daily candle above the shorter EMA line, then it may have the support needed to overcome the aforementioned $0.5300 resistance level. Thereafter, continued buy pressure may elevate SUI’s price to as high as $0.6355 in the next week.

In the next few weeks, the cryptocurrency market is anticipated to experience a series of token unlocks worth a collective $37 million, which could potentially exert a bearish influence on token prices. Typically, token unlocks tend to paint a bearish picture for cryptocurrencies because investors are driven by profit-taking motives, causing an increase in sell pressure.

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