SUI Price Down Nearly 20% In Just 5 Days, Why?
- SUI tokens have limited potential due to the current negative market sentiment and upcoming token unlocks.
- The price is currently above the Fib 50% support level, but the $0.5 price zone is a critical level to watch.
- Low-risk investors may consider buying at the $0.7-$0.72 support level while monitoring the Fib 23.6% level at $0.66 as a potential stop-loss point.
Sui, a Layer 1 platform, launched its tokens months ago, sparking excitement in the crypto world. Yet, because of the market’s current gloomy mood, the potential of these tokens has remained rather limited.
A higher quantity of these tokens is going to be released, according to the most recent Token Unlocks statistics. The sentiment of investors is currently quite debating whether to continue buying the tokens or not because, with the negative impact before the unlocks, the token price could fall further.
On July 3, 61,083,333.27 SUI will be unlocked, the tokens account for 0.611% of the total supply corresponding to $44,517,839 at the moment.
Sui currently has less than 10% of its tokens in circulation; unlocked tokens would be distributed to the Foundation and the Community Access Program.
Even so, the price of this token is at a disadvantage because of the sell-off in the market. Currently, the SUI price is above the Fib 50% level, which is the support confluence of the token. If the market still has positive signals from major coins like Bitcoin and Ethereum, this support level can hold.
The $0.5 price zone can be said to be an extremely dangerous price zone for the token because it has been tested once. If this last stop is broken, a panic sell is possible.
For now, low-risk investors can buy at the price at the $0.7-$0.72 support level, noting that we should cut our losses when the price falls through the $0.66 area as this is the Fib 23.6% level.
In terms of the long-term trend, SUI will not be preferred as its underperformance drop will not be more profitable than current DeFi tokens or meme coins.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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