- *Sui extends the downfall on Monday after closing in the red for the third consecutive week.*
- *The technical outlook reveals a triangle pattern holding the fate of Sui.*
- *Sui unlocked 58.35 million tokens, worth $194 million, on Sunday, signaling an increased supply.*
Sui (SUI) resisted a massive weekend token unlocking of 58.35 million, which otherwise would have caused a panic dump. But the respite may be short-lived. SUI is trading more than 1.50% lower on a Monday after three straight weeks of bearish close, flirting with the edge of a precipice. Watch for a breakdown on the triangle pattern that is threatening to materialize; such a development could bring about a sharp downturn and prices could nosedive to the chilling points of $2.71.
Sui price holds above $3 within a triangle pattern
Monday morning blues for Sui see a price around $3.30, marking an inert start to the week. But wait-it’s got to have a chance still! Nearly a 5% pop during the weekend breathed life into the altcoin as it bounced off a rising support trendline formed by the April 7th and 20th lows. Keep your eyes on this; the support may serve as a springboard for another bull run.
The price of SUI is coiling like a spring ready to pop. A descending resistance line, forged by lower peaks of January 4th, May 10th, and May 22nd, stood against an ascending ordinary support line. Through this converging act, it has authored a symmetrical triangle pattern that can trigger an explosive breakout. Which way will it leap?
The weekend rallies for Sui are but a mirage. This altcoin just keeps hemorrhaging, down 16% within three weeks, and breaking bad inside its triangle formation. Hope arose when Sui bounced off the 200-day EMA at $3.04 near the lower trendline and stayed above the 100-day EMA at $3.22 briefly before momentum ran out. Is it just a dead-cat bounce or could it lead to days back in the green?
Around $3, bulls are trying to defend positions, and now the market is showing signs of life. The MACD is lurking for potential crossovers at the bullish signal line, perhaps going into positives, gaining more buying momentum; if this happens, it will definitely take a charge and make a real rally out of it.
Sui stands at the edge of a knife with respect to its rally. Should the bearish pressure continue unabated, one may begin to witness a rather sharp descent from the $3.22 support at the 100-day EMA, culminating in a triangle breakdown. Thus, we expect a collision at the 200-day EMA at $3.00 giving way to the first line of defense. If that fails, the next stop will be $2.71, representing the vital 23.6% Fibonacci retracement of the January high of $5.29 and lows of $1.92 seen in April. Will Sui hold the line, or will gravity prove stronger?
SUI/USDT daily price chart. Source: Tradingview
At $3.60 marks Sui’s bull run while hitting a brick wall-the key Fibonacci level where its upward momentum could stall. If it does break free, however, Sui could clone itself beyond this hurdle keenly eyeing a more challenging resistance near $3.80.
Upcoming token unlocks warn of excessive supply
$194 million hit the market on Sui’s Sunday as the Sui Foundation unlocked 58.35 million SUI tokens. This makes up 0.58% of total SUI supply coming into circulation. It was never an attack of surprise; that said, it was a linear unlock strategy well planned in advance. Hold your breath because July 1 will see another unlocking of 58.35 million tokens. Then, on every month thereafter, deposits of 56.91 million SUI will be released unto the markets until October. The burning question is: do these unlocks fuel growth in the price or hurt the price? The crypto world will closely watch this.
SUI Unlock History. Source: Cryptorank
Sui currently sits with a circulating supply of 3.396 billion SUI, amounting seemingly to the massive 33.96% of 10 billion coin cap. Scheduled unlocks cast their shadows as a tide of SUI might drown it, triggering the price crash. The market braces for this onrushing event as more supply threatens the fence.
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Thanks for reading SUI Price Forecast: Fallout from triangle pattern could lead to further losses toward $270
