- SUI shows an inverted cup and handle pattern, hinting at a potential price decline of up to 38 percent from its current support zone.
- Over $123 million in token unlocks are scheduled, with early contributors receiving a significant portion that could enter the market.
- Technical indicators like the death cross and low MFI reflect weak bullish momentum, increasing the probability of a fall below the $2 level.
SUI traded at $2.83 on June 30, showing a 1.8% daily gain. Its 24-hour trading volume surged by 37% to $760 million, highlighting increased activity around the altcoin. Although this spike occurred, the price action shows the trend is declining, and several factors indicate a reversal in the direction to the bearish one.
The daily chart shows the formation of an inverted cup and handle pattern, which is normally an indicator of a decline. The current handle, shaped by a mild uptrend, lacks strong support. If selling pressure increases, SUI could break below the $2.66 support level. A continued decline may bring the price down by as much as 38%, possibly reaching a 2025 low of $1.651.
Death Cross Formation Strengthens Bearish Outlook
Technical indicators further support the bearish view. A recent death cross has appeared, where the short-term moving average drops below the long-term one. This pattern typically forecasts extended losses. Although the handle formed with a small uptick, it lacks the strength to sustain any bullish reversal, placing additional pressure on current support levels.
midpoint of 50, signaling weak buyer participation. Despite broader optimism in the crypto market, with bullish forecasts for Bitcoin, SUI’s chart setup shows a lack of positive momentum. This reinforces expectations of a decline unless buying interest strengthens.
Upcoming Token Unlocks Increase Price Risk
According to Tokenomist, 44 million SUI tokens worth over $123 million are scheduled for release within seven days. Most of these tokens are reserved for the community fund and development initiatives. However, around 9.98 million tokens, valued at $28 million, will be distributed to early contributors. If these tokens enter exchanges, they could significantly affect market supply and intensify downward pressure.
Grayscale recently added SUI to its Q3 crypto list, which briefly supported the price. However, this development has not counteracted the broader bearish signals and upcoming supply pressure from unlocks. Unless market sentiment improves or large holders refrain from selling, the risks for SUI remain elevated.
