Sui (SUI) is Heading into a Critical Week
74 million tokens, valued at approximately $262.88 million, are scheduled for unlocking between April 28 and May 5. This represents 2.27% of the token’s circulating supply. This large unlock event introduces risk. Historically, token unlocks increase the circulating supply, often leading to higher selling pressure, especially if the unlocked tokens belong to early investors or insiders.
Analysts Warn of Heightened Selling Pressure
Market analysts warn that more than $625 million worth of tokens will be unlocked across multiple projects this week. Major unlocks include SUI, OMNI, OP, ENA, ZETA, and others, with OMNI facing an unlock equivalent to 153.77% of its current circulating supply.
“High unlocks usually equal extra selling pressure, especially on lower liquidity tokens,” an analyst CryptoDecrypter noted. He also emphasized that not every unlock leads to an immediate dump, which can add serious overhead resistance to price movements.
Besides SUI, other tokens such as OP (Optimism) and OMNI are scrutinized for potential price volatility following their unlocks. In addition to the cliff unlock, SUI will see a linear unlock of 3.35 million tokens worth approximately $11.45 million during the same period. Although smaller compared to the cliff unlock, this consistent daily supply addition can weigh SUI’s price stability.
Technical Indicators Show Strength for SUI
On the 4-hour chart, SUI maintains a bullish structure. The token recently traded at $3.60, showing resilience above key short-term exponential moving averages (EMAs). The 20-EMA ($3.46), 50-EMA ($3.10), 100-EMA ($2.77), and 200-EMA ($2.58) are all positioned below the current price, indicating sustained bullish momentum.
The Relative Strength Index (RSI) currently stands at 64.66, retreating slightly from overbought territory. The RSI had earlier crossed above 70 during the price surge but has since moderated, suggesting a cooling of momentum rather than an outright reversal.
Immediate support levels for SUI are visible at the 20-EMA ($3.46) and the 50-EMA ($3.10). If selling pressure intensifies after the unlock, the $3.46 mark will be crucial. A breakdown below it could accelerate a decline toward the $3.10 support zone.
On the upside, SUI faces resistance at the recent local high of $3.63. A breakout above this level could open a path toward the psychological $4.00 barrier, assuming market sentiment remains positive despite the unlock event.
Volume trends will play a crucial role. A spike in sell volume combined with price rejection at resistance could signal the beginning of a corrective phase. Conversely, low sell volume during unlocks could suggest strong holder confidence and allow the uptrend to continue.