Sui to Unlock $265M Worth of SUI on May 1st

The SUI token faces a significant event this week that may introduce selling pressure and test its recent bullish momentum. Tokenomist data indicates a substantial unlock of 74 million SUI tokens, roughly 2.28% of the circulating supply, scheduled for May 1st.

This unlock arrives at a time when demand for SUI has been notably increasing, adding a complex dynamic to the market. It is worth noting that only 33% of the total SUI supply has been unlocked to date.

Sui to Unlock Tokens on May 1st

This impending unlock presents a crucial juncture for SUI. While the unlock could trigger profit-taking by some investors, leading to a price correction, the network’s increasingly robust on-chain fundamentals may provide a buffer against a significant downturn.

Notably, the total value locked (TVL) in Sui-based protocols has experienced a remarkable surge, climbing by 40% since the beginning of April and currently standing at $1.73 billion, as reported by DeFiLlama. This substantial increase in TVL indicates growing confidence in the Sui ecosystem and its decentralized finance (DeFi) applications.

Furthermore, the stablecoin market capitalization on the Sui network has also witnessed significant growth, rising from $630 million to $880 million during the same period. This expansion suggests increased adoption and utility of stablecoins within the ecosystem, potentially driving further activity and liquidity.

Trading volume on Sui’s decentralized exchanges typically ranges from $500 million to $ 1 billion daily, indicating good trading activity. Trading volume on the network exceeded $3.6 billion in the past week, driving the monthly volume above $11 billion. This consistently strong trading demonstrates increasing interest in and usage of the network.

SUI Price Action

According to CoinGecko data, SUI is currently trading at around $3.79, having surpassed the $3.30 resistance level with a 5.8% increase over the last 24 hours. Several positive signs have helped this increase. But the relative strength index (RSI) of 78 suggests that the token might be overbought, meaning it could soon run out of steam.

Even so, momentum indicators still look favorable for buyers, and the moving average convergence divergence (MACD) remains positive. Plus, all estimated moving averages currently show a buy signal. If people continue to buy and SUI stays above $3.60, it might try to reach $4.00, a level that could attract more momentum traders.

On the other hand, if more people sell after May 1st, SUI might test the support level at $3.30 again. If there’s a bigger drop, it could find more support around $3.00, near the 10-day exponential moving average (EMA).

The post Sui to Unlock $265M Worth of SUI on May 1st appeared first on Cointab.