SUI has defied market expectations by reaching a new all-time high of $5.1 despite its recent token unlock. The January 1st release flooded the market with 64.19 million tokens, valued at approximately $300 million.
The unlock event, which primarily benefited Series A and B investors, who received over 19 million SUI each, represents a crucial test of market confidence in the Layer 1 blockchain protocol. While token unlocks typically trigger price corrections, SUI’s unprecedented price movement suggests a shifting dynamic in how the market values layer 1 blockchain tokens in early 2025.
Recent Developments Fueling SUI’s Price Rally
The surge in SUI’s price to its all-time high coincides with significant ecosystem developments. OKX Ventures recently invested in Haedal Protocol, a liquid staking solution built on Sui Network, marking a strategic expansion of Sui’s DeFi capabilities. The investment highlights growing institutional confidence in Sui’s ecosystem, particularly in its liquid staking sector, which has become vital to the network’s growth.
Adding to this momentum is the successful completion of the January 1st token unlock, which released 64.19 million tokens worth $300 million. Unlike typical unlock events that often trigger price corrections, SUI’s value has continued to appreciate, demonstrating the token’s resilience.
This unusual price behavior suggests strong market fundamentals and investor confidence in Sui’s long-term potential. The market’s positive response to the token unlock has created a favorable environment for SUI’s price appreciation, pushing it beyond the $5 milestone.
Technical Outlook Points to Strong Momentum for SUI
SUI token’s price action reveals an interesting narrative of strength and sustained buying pressure. The formation of an ascending channel pattern on the 30-minute timeframe shows a series of higher lows and higher highs, indicating controlled bullish momentum. This pattern has been evident in the price movement following the January 1st token unlock event.
The current price at $5.05 sits near the upper boundary of this channel, with the RSI reading of 71.51 suggesting strong momentum, though approaching overbought conditions. The MACD indicator maintains a positive stance above the signal line, with readings of 0.0780 and 0.0754, confirming the ongoing bullish trend.
SUI/USD Trading Chart. TradingView.
What makes this movement noteworthy is the volume profile during the recent surge. Trading volume has remained high, especially during the breakout above the $4.80 resistance level, lending credibility to the upward move. The price has maintained its position above all major moving averages, forming a solid support base around the $4.40 level.
The ascending channel’s lower boundary near $4.80 now serves as immediate support, while the upper boundary projects potential resistance around $5.20. This setup, alongside recent ecosystem developments, provides a clear framework for SUI’s current market position and potential price trajectory.
