Sui price has performed exceptionally well recently as it jumped by 106% from the lowest level this month. It was trading at $3.60 on Sunday, the highest level since February, bringing its market cap to almost $12 billion. This article examines the potential for a 20% decline in the Sui token price from its current level ahead of a $120M token unlock.
Why Sui Price Surged Last Week
Sui, a top layer-1 network, had a great performance last week as demand for its solution jumped. Its meme coins thrived, with their total market cap nearing $200 million as tracked by CoinGecko. The top ones include MIU, LOFI, MemeFi, and Sudeng, all of which have a market cap of over $25 million.
This demand led to an increase in the total value locked (TVL) and volume of assets in the decentralized exchange (DEX) network. Data shows that the TVL in the Sui network has jumped by about 25% in the last seven days to $2.45 billion. The total volume of stablecoins in the network has increased to a record high of $879 million.
The biggest networks in Sui’s decentralized finance network are Suilend Protocol, NAVI Protocol, Cetus, Haedal, and Scallop.
More data shows that the volume of tokens handled on the network jumped sharply in the last seven days. The 24-hour volume jumped to $338 million, making Sui the fifth-largest player in the industry, following Base, Solana, Ethereum, and Binance Chain.
Its volume in the last seven days jumped by 60% to $3.43 billion. The top DEX networks in Sui like Cetus, Momentum, Kriya, and Bluefin handled more volume than in the previous week.
Sui Token Price Analysis
The daily chart shows that the Sui price formed a double-bottom pattern at $2 and then bounced back to a high of $3.80. It then moved above the neckline at $2.8350, the highest swing on March 27.
The coin has jumped above the 50-day and 100-day moving averages, as well as above the 38.2% Fibonacci Retracement level. It is trading at the top of the trading range of the Murrey Math Lines.
Therefore, the Sui price is likely to drop and retest the key support at $2.83, a decrease of about 20% from its current level. A move above the key resistance at $4 will indicate a strong pivot reversal and point to further gains.
A potential catalyst for this sell-off is the scheduled unlocking of $120 million worth of tokens by the Sui network on Thursday.
