After a steady journey, the Sui price has seen a sharp decline amid the massive $145 million token unlock today. This surprising divergence in its trajectory has raised concerns over its future trend, with traders and analysts closely watching the altcoin’s movements.
Adding to the woes, September is historically a tough month for cryptocurrencies, potentially exacerbating Sui’s current downward trend. As the token struggles to regain its footing, this article studies Sui’s current performance, the unlock event’s impact, and the coin’s potential performance.
$145 Million Token Unlock
Notably, September is poised to witness a staggering $453 million token unlock, potentially impacting the global crypto market. Among these tokens, SUI, ENA, and APT lead with over $2.1 billion coins to be released in the month.
Today, Sui saw a massive release of 44 million tokens, worth around $145 million. The next unlock event is set for October 1, when another 44 million will be unleashed. As of now, Sui has unleashed about 3.56 billion tokens that constitute 35.61% of the cryptocurrency’s total supply in circulation.
How Will Token Unlocks Impact the Crypto Market?
Token unlocks occur when projects release previously locked coins, typically to prevent immediate sell-offs and incentivize developers, supporters, and community members over time.
It is noteworthy that massive token unlocks are a dreaded phenomenon in crypto, flooding the market with sudden liquidity. It often outstrips demand and triggers sharp price plunges. These releases bring a mix of opportunity and risk as the influx of new tokens can fuel growth if holders choose to stake or reinvest.
However, if demand falters, the surge in supply can weigh heavily on prices. With billions of tokens set to be released this month, traders are bracing for significant volatility. While some investors see this as a warning sign, others view it as a buying opportunity if short-term sell pressure drives prices down.
Sui Price Dips 6%
Sui is currently trailing through a negative zone, with its price experiencing significant downturns. Following the $145 million token unlock, the Sui coin has seen a notable. Downtrend. At press time, Sui is valued at $3.25, down 1.63% in a day, 6.08% in a week, and 4.92% in a month.
Despite this overall negative price trend, traders are remaining active, with the 24-hour trading volume hitting $921.8 million, marking a 65% hike. With a market cap of $11.44 billion, the token is ranked 14th on CoinMarketCap.
September Volatility Fears Surge
Beyond the immediate implications of this unlock event, the community is also worried about the cryptocurrency’s potential performance this month. September, often known as “Redtember,” is the worst month for the crypto market, with major tokens including Bitcoin and Ethereum having historically experienced massive losses this month.
Given this trend, fears are growing among investors and traders that SUI will similarly succumb to selling pressure and experience a downturn in this Redtember.
However, Sui’s past performance tells a different story. Unlike other cryptocurrencies, Sui has had an average return of +38.9% in previous Septembers. While the crypto saw a return of a whopping 122% in 2024 and -6.55% in 2023.
Will Sui Token Price Surge This Month?
Crypto VIP Signal, a prominent analyst on X, shared a bullish prediction on the Sui token. As per the analyst, the altcoin is currently trading in a falling wedge pattern, signaling an imminent breakout. He forecasted the coin’s possible surge to a new all-time high if the price breaks past the critical resistance level of $3.50. Another analyst, Gordon, posits that the next target for the Sui coin is an ambitious $10.
Nonetheless, whether the coin will follow a bullish or bearish track remains to be seen. Only time will tell how the cryptocurrency will perform in the historically volatile month. Now, traders and analysts are closely monitoring the price movements, ready to adapt to whatever the market throws their way.
