- Sui price has moved sideways in the past few days.
- The developers will unlock tokens worth over $21 million.
- Sui has struggled to gain traction despite partnering with RedBull.
Sui price has come under intense pressure in the past few weeks as demand for the tokens wavered. The token slipped to a low of $0.60 on Monday, the lowest level since June last year. In all, the coin has retreated by over 23% from its highest point this year.
Sui token unlock ahead
Sui is a relatively new blockchain project that aims to be a good alternative to existing chains like Ethereum and Solana. It has better features than these networks, including faster speeds and low transaction costs.
Sui has also invested heavily in marketing in a bid to boost its popularity. Its most recent marketing strategy was to partner with RedBull Racing, the leading Formula 1 team.
Still, Sui faces the same challenges that other newer chains have gone through recently. The biggest one is that users are more inclined to projects on Ethereum, Tron, BNB, and layer-2 networks like Arbitrum and Polygon.
As a result, Sui’s ecosystem has struggled to gain traction. Data by DeFi LLama shows that the network has a total value locked (TVL) of just $12 million. It has just 12 DeFi dApps in the ecosystem, who include platforms like Cetus, Aftermath Finance, FlowX Finance, and DeepBook.
These dApps face an uphill battle ahead, including the challenge of competing with the likes of dYdX, Uniswap, GMX, and PancakeSwap. These traditional platforms have more users and deep liquidity.
The next important Sui news of the week will be the upcoming token unlocks scheduled for Wednesday. This event will see the developers unlock tokens worth over $21 million, which is equivalent to 5.29% of the token in circulation. Historically, as I wrote in this article on dYdX, token unlock tend to be bearish.
Sui price prediction
The 4H chart shows that the SUI crypto price has been in a steep downward trend in the past few weeks. It has moved slightly below the key support level at $0.6276, the lowest level on June 30th. The token has moved slightly below the 25-day and 50-day moving averages while volume has also dropped.
Therefore, the outlook of the Sui token is bearish, with the next level to watch being at $0.5500, which is about 11% below the current level. A move above the resistance point at $0.6500 will invalidate the bearish view.
