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After a significant price increase, SUI tokens worth $265 million will be unlocked this week, which may lead to selling pressure.
On May 1st, approximately 74 million SUI tokens, accounting for 2.28% of the circulating supply according to Tokenomist, will be unlocked. As demand continues to heat up, the upcoming SUI token unlocks will bring new selling pressure. Currently, only 33% of the total SUI supply has been unlocked.
Meanwhile, Sui's on-chain fundamentals are continuously strengthening. According to defillama, the total value locked in Sui-based protocols has increased by 40% since early April, now reaching $1.73 billion.
During the same period, the stablecoin market cap on the network has jumped from $630 million to $880 million, with daily decentralized exchange trading volume hovering around $500 million.
Over the past seven days, the network's transaction volume exceeded $3.6 billion, with monthly transaction volume breaking through $11 billion. With new supply about to enter the market, some traders might take profits after last week's rise. However, others believe that the continuous growth of DeFi indicators suggests Sui can absorb new tokens without market decline.
After strongly breaking through the $3.30 resistance level, SUI is currently trading at around $3.62. Bullish signals from key indicators support this rally. The Relative Strength Index is at 78, indicating the asset might be in an overbought state, suggesting potential short-term weakness. The momentum indicator remains favorable for buyers, and the Moving Average Convergence/Divergence is still in positive territory.
Additionally, all estimated moving averages show buy signals. If buying pressure continues and SUI price remains above $3.60, it may attempt to move towards $4.00, a psychological level that could attract more momentum traders.
On the negative side, if selling pressure from the May 1st unlock begins to intensify, SUI might retest the $3.30 support level. Further pullback could find additional support around $3.00 (near the 10-day moving average). If the market successfully digests the unlock pressure, SUI might fluctuate between $3.30 and $3.60 before forming a new trend.
