Sui Price Went Parabolic in April as Meme Coins in Its Ecosystem Soared

Sui price went parabolic in April as meme coins in its ecosystem soared. It more than doubled from its lowest level on April 7 and its highest swing last week.

The price of Sui (SUI) may come under selling pressure in the next few days as the network unlocks 88.34 million tokens, valued at $296 million at last check, on May 1.

This token unlock is part of its monthly unlock, when it releases over 50 million tokens as part of its vesting schedule. Most of the unlocked tokens will go to Series B investors, who will receive 19.32 million of them. 14 million of these tokens will be allocated towards staked subsidies, while the remaining tokens will be distributed to early contributors and Mysten Lab Treasuries.

Sui holders will continue being diluted for many years as the circulating supply is 3.24 billion against a total supply of 10 million. As the chart below illustrates, the last Sui token unlock is scheduled to occur in May 2030.

A token unlock is a situation where new coins are brought in the market as part of the vesting schedule. It is often seen as a bearish thing since it introduces new supply in the market, which may affect price when there is no equal demand.

However, tokens don’t always drop ahead or after a timelock as the vesting schedule is usually publicly available. This means that investors have already priced in the future unlocks. For example, TRUMP price (CRYPTO: TRUMP) jumped by 15% after a $300 million token unlock earlier this month.

Sui Price Prediction & Top Down Analysis

The weekly chart shows that the Sui token reached a high of $3.8690 this month. These gains happened last week as Bitcoin and most altcoins.

There are signs that the momentum is slowing down as the coin has pulled back this week. It is also slowly forming an evening star candlestick pattern. This pattern is characterized by a small body and large upper and lower shadows. Since this is a weekly chart, it will be confirmed if it ends the week around the $3.5 range.

Further selling pressure, because of the token unlocks, may see the coin drop to a low of $2.3436, the highest swing low in October last year. A weekly close above the high of $3.8690 will invalidate the evening star candle and point to a higher Sui price prediction. Such a move would signal more gains, potentially to the psychological point at $5.

Sui Coin Price 4-Hour Chart Analysis

The four-hour chart is showing a more bearish picture of the SUI price. That’s because it formed what looks like a double-top pattern at $3.811. It has now moved slightly below the crucial support at $3.4120.

Oscillators also show that it is losing momentum. The Relative Strength Index (RSI) has moved below 50, while the Awesome Oscillator (AO) bars are about to move below the zero line. A loss of momentum is usually confirmed when the RSI drops below 50, and when the AO crashes below zero.

Therefore, this chart analysis suggests that the SUI coin price may drop by at least 20% in the near term to $2.7377.

Sui has become one of the top chains in the crypto industry, gaining share in an industry like decentralized finance (DeFi). While the long-term bullish trend may remain, the value of SUI may drop further in the immediate short term.

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