Key Insights
- The 7 biggest token unlocks will release $184.23M worth of tokens, and SUI crypto makes up $82.81M of that.
- SUI weekly price has fallen 75% from its highs and looks like it’s heading back to $1 but stabilizing just around $1.30.
- Liquidity to the upside, the DSS Bressert cross closed, the Stochastic RSI crossed, and the daily RSI is extremely oversold.
Sui Network (SUI) continued to crash, even as some crypto tokens showed recovery during the day. The altcoin stayed around the $1.30 zone outside its key consolidation zone. The unlock, together with overall fragility in the sector, accelerated the crash in SUI price action.
The month of December was anticipated to be bullish, but odds seemed to be shifting swiftly as historical data suggested more crashes. However, times have changed, and it’s challenging to determine when the bull market begins. Usually, it is after much of the capitulation has happened, and data denotes that the markets are in that phase.
SUI Crypto Leads in Token Unlocks
The month opened with a massive unlock from the Sui Foundation, where more than $82 million was added into the circulating supply. This value represented approximately 55.54 million SUI, equivalent to 1.51% of SUI’s total market capitalisation.
Ethena (ENA) and EigenLayer (EIGEN), among others, would see unlocks of less than $27 million and $21 million, respectively. The activities induced sell pressure, which was amplified by the massive liquidations that occurred overnight, as of press time.
The slight rebound in some tokens has not been seen in SUI crypto probably due to the sell pressure from the unlocks. The 0.56% increase in supply may seem small, but it is critical as it absorbs a portion of the liquidity.
SUI Crypto’s Short-Term Price Outlook
On the charts, the price action was showing some signs of strength, even though the candles were screaming seller dominance. SUI crypto price crashed from the $1.60 zone to $1.30 immediately after obliterating past the descending resistance trendline.
The potential bottom that was forming around $1.30 was weak, as seen from its small reaction candles. Additionally, the sellers responded too quickly, indicating a lack of dominance from the bulls. However, analysts had a different view.
According to AltCryptoGems, SUI demonstrated its first sign of real strength with this breakout. In his view, the analyst flipped the trendline and was retesting it alongside the horizontal support around the $1.30 zone.
AltCryptoGems expressed his conviction that the $1.30 zone would hold. The analyst wrote, “If there is a place where buyers should step in, it’s simply this one.” Interestingly, other indicators and liquidity conditions were supportive of a potential reversal, even though the sell pressure had yet to be fully priced into the SUI markets.
The Twist: Is a Reversal Looming on the Weekly Chart?
The weekly chart showed considerable alignment for a potential reversal. The price broke below the $1.70 zone and looked headed toward the $1 zone. However, this drop was quickly stabilized, hinting at buyers stepping in.
Again, a significant amount of liquidity was building to the upside, according to CoinGlass data, which could pull the price in that direction. This was a perfect combination, as it showed that traders were convinced the price would hit the orders above the current pricing.
That’s not all. The weekly DSS Bressert cross closed, the Stochastic RSI crossed, and the daily RSI was extremely oversold. The indicators pointed to a potential reversal as per historical data of May 2024 and March 2025.
All in all, the price action was in bearish territory, considering the milestones it had achieved over the year in terms of US dollar value. The discount presented a great opportunity to buy, but be wary of the bears controlling the cryptocurrency markets.
