• SUI has a 34.62 million token unlock event lined up for November 3. 
  • With 4% of SUI token supply unlocked this week, the asset is likely to battle intense selling pressure. 
  • Though SUI fundamentals reveal bullish outlook, the Layer 1 blockchain token is at a risk of price decline.

SUI, a Layer 1 blockchain token, is gearing up for a $15.88 million token unlock event. Token unlock events are typically considered bearish for the asset as they increase selling pressure on the asset. SUI price is likely to decline with 4% of its supply entering circulation this week.

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SUI token unlock scheduled for November 3

Based on data from the tracker token.unlocks.app, smart contract token SUI has an unlock lined up for November 3. 34.62 million tokens worth $15.88 million will be unlocked. Of the unlocked tokens, 34.62 million or 4% of the circulating supply will be assigned to the community access program.

Another 900,000 tokens are assigned to a linear unlock, for 26 days. 

SUI token unlock

SUI token unlock

As the volume of SUI tokens in circulation increases, it contributes to rising selling pressure on the asset. SUI price climbed 7.92% over the past week, breaking out of its multi-month downtrend. The unlock event is set to trigger a trend reversal in the short term. 

SUI fundamentals signal bullish strength

While the upcoming token unlock is likely a bearish catalyst for SUI, fundamentals hint at a long-term bullish outlook. In a recent tweet, SUI shared statistics like average daily volume and Total Value Locked (TVL).

The TVL of SUI has climbed consistently over the past month. SUI’s TVL hit $70.29 million, marking a milestone for the Layer 1 blockchain token. Higher TVL is indicative of rising popularity of the asset among market participants. 

The second fundamental catalyst is SUI’s announcement of Atomic Wallet integration. Over 5 million Atomic Wallet users now have access to SUI token and its ecosystem, signaling growth in the Layer 1 blockchain protocol.

Despite bullish fundamentals, the technical outlook on SUI price is bearish.

Technical analysis: SUI holders brace for likely decline

SUI price is $0.4538 on Binance. After yielding nearly 8% gains over the past week, SUI is likely headed towards a pullback. As seen in the SUI/USDT one-day price chart below, SUI price is above its two long-term Exponential Moving Averages (EMAs), 10-day at $0.4422 and 50-day at $0.4487.

The Fair Value Gap (FVG) between $0.5531 and $0.5727 acts as a resistance for SUI price. In the event that SUI price crosses the resistance and the gap is filled, the token is likely to resume its downward trend.

The 10-day and 50-day EMAs at $0.4422 and $0.4487 are likely to act as a support. 

SUI/USDT one-day price chart on Binance

SUI/USDT one-day price chart on Binance

The Fibonacci Retracement of the decline from SUI’s all-time high at $1.994 in May, to $0.4171 in mid-September marks support for the Layer 1 blockchain token in the event of a correction. If SUI price breaks down support at the 10-day and 50-day EMAs, the asset could hit the $0.4171 level.

 

 

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