Can SUI’s Token Unlock Bring Respite; Will AXS Follow?

On the same day that Sui (SUI) is set to release 3.31% of its total supply into circulation, Axie Infinity (AXS) might experience a significant sell-off, recent reports showed. According to data from Token Unlocks, SUI’s upcoming unlock would be worth $60 million. This value represents 3.31% of its total supply.

Token unlocks refer to the release of previously-restricted cryptocurrencies into the market. Sometimes, this event leads to a price decline. Other times, the price of tokens jumps later.

SUI Aims to Jump One More Time

Since SUI’s previous unlock, the price has increased by 99.22%. Therefore, the upcoming unlock means that there is a chance the price might increase again. At press time, SUI’s price was $1.47, indicating that the value has increased by 22.34% in the last seven days. From a technical perspective, SUI’s recent attempt at hitting $1.65 was rejected.

However, the 4-hour SUI/USD chart showed that the previous resistance at $1.45 has been turned into support. With this in place, SUI might not drop back to $1.33, which was the previous support zone.

Coin Edition also checked out the Exponential Moving Average (EMA). As of this writing, the 9 EMA (blue) and 20 EMA (yellow) were almost in the same spot. This indicates that the price action was indecisive for the time being.

SUI/USD 4-Hour Chart (Source: TradingView)

Furthermore, traders might need to pay attention to the crossovers. Should the 9 EMA flip the 20 EMA, then the reversal setup would be bullish. If it’s the other way around, SUI’s price might decrease.

AXS Defies the Odds

For AXS, Spot On Chain disclosed that Simon Kim, the CEO of Hashed, the decentralized network, sent $3.23 million worth of the token to Binance. The post noted that Kim had sent AXS to the exchange at an average price of $7.54.

With a high exchange inflow like the one above, AXS’ price should plummet. However, indications from the 4-hour showed that the sellers of the token had been exhausted. Thus, the price action seemed to be breaking out of the descending direction.

Also, the Relative Strength Index (RSI) had increased to 44.34. This suggests that buyers were present. As it stands, AXS’ next target might be to hit $7.50.

AXS/USD 4-Hour Chart (Source: TradingView)

To achieve that, the pressure on the bullish side needs to increase. Should this be the case, the RSI might move past the midpoint, and AXS’ price might climb higher.