SUI Climbs as $119M Unlock Looms — Will the Rally Last?

• SUI jumped 4% ahead of a $119 million token unlock, the largest of all upcoming releases next week.
• Despite the unlock, SUI’s circulating supply impact is just 1.16%, hinting at limited downside risk.

SUI recorded a fresh uptick, jumping by more than 4% as traders brace for a large token unlock next week. According to Tokenomist data, the Layer-1 blockchain plans to release $119 million worth of SUI into circulation on Monday. Notably, this represents 56% of all tokens set to unlock.

SUI Leads Upcoming Unlocks with Over Half of Total Volume

It is worth noting that the SUI network is preparing to release $119 million worth of tokens into circulation on Monday. This figure makes up 56% of the total token unlocks expected across several projects next week. According to Tokenomist data, the total estimated value of unlocked tokens is expected to reach $212 million.

It is essential to add that despite the prominent dollar figure, the SUI unlock will only account for 1.16% of its circulating supply. This could mean that the impact on price might be limited, depending on how the market responds.

According to market observations, Cliff unlocks, such as this one, involve the sudden release of a lump sum of previously locked tokens. Such events often create pressure on token prices as supply increases sharply. However, SUI’s recent 4% rally suggests some level of optimism from traders ahead of the supply increase.

In addition to SUI, other projects, such as Optimism (OP), Kamino Finance (KMNO), and FET, are also planning token unlocks worth $16 million, $12 million, and $2 million, respectively. 

Kamino’s release, which represents 10% of its total supply, could have a more significant impact on its price. Meanwhile, smaller projects such as Ethena (ENA), Zetachain (ZETA), AGIX, and DYDX will also see modest increases in circulation.

Meanwhile, as highlighted in our previous news brief, Nasdaq’s filing for a 21Shares SUI ETF signals institutional confidence in the network overall. Also, the filing sparked a sharp increase in trading volume and market optimism.

Market Focus Shifts to Price Movement as SUI Tests Key Levels

As of the time of writing, Marketcap data indicates that it is trading at $2.73, up 3.97% as of writing. Meanwhile, SUI is trading within a descending channel. It is facing resistance at the 100-day Simple Moving Average near $2.88. 

A daily close above this level and beyond the top of the channel could trigger a move towards the $3.55 range. However, if the coin fails to hold its ground, it could slip to the support area near $2.29. 

SUI/USDT Price Chart | Source: TradingView

Technical indicators suggest that selling pressure may be slowing. Both the Relative Strength Index (RSI) and Stochastic Oscillator are currently below their neutral points but are showing an upward trend. This suggests a potential shift in momentum, although confirmation would depend on how SUI navigates the key resistance levels in the coming days.

It is worth noting that as the token unlock date approaches, traders are closely monitoring SUI’s movement. How the market digests the influx of new tokens will likely determine whether this rally holds or fades.

Meanwhile, as discussed in our earlier post, after the $223 million hack that hit Cetus Protocol. Sui announced a $10 million investment aimed at strengthening the security of the entire ecosystem. 

Additionally, CNF reported that the Sui development team launched a new technology called zkAt (Zero-Knowledge Authenticator). The product enables users to authenticate without revealing any policy or identity structure to the network or validators.