The SUI token, flagship project of the Sui blockchain, appears to be struggling below the $3 mark. Persistent bearish sentiment and technical and supply factors weigh on investors, raising concerns about the future of this promising token.
Despite a 10% increase in the last 24 hours, the SUI token remains under pressure, falling 15.5% over the past 30 days. With a current price around $2.96, it’s attempting to reclaim its monthly high of $3.50 and its all-time high of $5.20.
This bearish trend appears to be explained by a combination of technical and supply factors. The token has been evolving in a descending channel for several weeks, dropping below its 50-day moving average. SUI’s weakness is also part of a broader pullback in the crypto market, affected by recent geopolitical tensions.
However, SUI has perfectly bounced off its daily POC at $2.3 and has risen 27% since then. The RSI shows buyers returning to the market. For now, the CMF remains negative, so caution is still advised in the short term, even though the token appears poised to recover the $3.6 level soon. Breaking through the trendline at $3.09 would confirm this new bullish trend for the token.
Another factor weighing on SUI is the recent unlocking of 44 million tokens by the Sui Foundation, worth approximately $120 million. This is just the first step in a long-term plan that anticipates adding more than 55 million tokens per month until 2030. This recurring supply creates a risk of oversupply.
With now 3.45 billion SUI in circulation (34.5% of the total supply), investors are closely watching the key support level at $2.30 in case of a bearish reversal. But according to trader Kyle Chassé, SUI unlocks generally have no impact on the market.
In case of an upward movement, a breakout above $3.8 with volume would send SUI toward new all-time highs.
Although the SUI token remains promising in the long term, the current bearish pressures don’t seem ready to fade. Its recovery could therefore be hindered in the short term. Between technical factors, increasing supply, and mixed market sentiment, analysts expect the token to struggle to regain the strength it displayed at the end of last year.
Savvy investors will closely monitor SUI’s evolution in the coming weeks, looking for potential early signs of a trend reversal. In the meantime, caution remains essential in this volatile market.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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