The SUI token has seen a sharp decline this week, losing more than 20% of its value since Monday, dropping from $4.40 to currently $3.36 📉.
🚨 Reason? A major event: Token unlocking!
On August 1, approximately 56.91 million SUI tokens were unlocked, significantly increasing the circulating supply, the largest of its kind this month.
⬅️ This event led to a strong wave of selling from investors who anticipated a price drop.
📊 Technical Analysis:
🔹 The price has retested the previous downward trend which has now turned into potential support.
🔹 Selling pressure has started to decrease, and buying signals from whales have appeared on OKX and Binance platforms worth more than $30 million.
🔹 Futures purchases exceeded $152 million.
But if the price does not manage to bounce back from the current support level, it may drop further to the range of $3.12 - $3.37 according to Fibonacci levels.
---
📈 The performance of the SUI network is strong despite the drop:
💧 Liquidity: Increased to $1.24 billion in mid-July, currently around $1.08 billion.
🔐 Total Value Locked (TVL): Reached an all-time high of $2.29 billion!
📊 Monthly DEX trading volume: Reached $14.26 billion in July, the highest in its history!
🟢 Summary:
Despite the recent drop, the fundamentals of the SUI network remain strong. The negative impact of token unlocking may be temporary, and whales have begun to accumulate from the bottom!