$SUI is facing significant bearish pressure, with technical analysis suggesting a potential crash below the $2 mark. This projection is largely due to the emergence of an "inverse cup and handle" pattern on the daily timeframe, a well-known bearish indicator in technical analysis. This pattern typically signals a trend reversal from bullish to bearish, characterized by an inverted U-shaped "cup" followed by a short upward retracement known as the "handle." A confirmed breakdown below the handle's support level, particularly with high trading volume, would validate the pattern and could lead to a substantial price decline.
Adding to the bearish sentiment is a significant token unlock event scheduled for SUI. On July 1, approximately 44 million SUI tokens, valued at around $127 million, are set to be unlocked, representing 1.3% of its circulating supply. Such large-scale token unlocks typically increase the circulating supply, which can lead to selling pressure if demand does not keep pace. Historically, major token unlocks have often resulted in price volatility and downward movements as early investors or team members gain access to their vested tokens and may choose to sell. This impending supply increase, combined with the bearish technical pattern, creates a challenging outlook for SUI's price in the near term.
