SUI token unlock may fuel rally beyond $1.90 in October

Layer-1 blockchain Sui (CRYPTO:SUI) is set to release 64 million tokens on October 1, 2024, valued at over $100 million, representing 2.4% of its total circulating supply.

This token unlock has sparked significant interest in the crypto community, with many investors anticipating increased volatility and price movement.

Historically, token unlocks can introduce market volatility, but current market sentiment suggests a different outcome for SUI.

In recent weeks, SUI has shown a 115% price surge, attributed to factors such as Grayscale’s decision to launch the SUI Trust and the project’s rising Total Value Locked (TVL), signaling increased confidence in the altcoin.

SUI’s price has reached $1.73, and the Bull Bear Power (BBP) indicator, which tracks buyer and seller strength, reveals that buying pressure is currently dominant.

This buying pressure, combined with rising volume levels, suggests that SUI’s price could break past the $1.90 resistance level.

Data shows that SUI’s trading volume increased by 122% in the past 24 hours, reaching $862.48 million.

Sustained volume increases often indicate continued price growth, but traders are advised to monitor volume closely.

If volume declines while the price rises, there may be a weakening of the uptrend, leading to a possible reversal.

However, at present, the bulls remain in control of SUI’s market momentum.

On the technical side, SUI’s 20-day Exponential Moving Average (EMA) is positioned above its 50-day EMA, reinforcing the bullish sentiment.

If buying pressure persists and SUI successfully breaks through the $1.90 resistance, analysts expect the token to reach $2.10.

However, if profit-taking occurs, SUI’s price may retrace to $1.45, temporarily halting the upward trend.

At the time of reporting, the Sui price was $1.91.