Struggling Sui price remains below $4, debating further declines?
In the rapidly evolving world of cryptocurrency, the upcoming token unlocks for SUI are set to make waves in the market. Over the next seven days, daily unlocks worth more than $1 million will increase the circulating supply of SUI, joining other major assets such as SOL, WLD, TIA, DOGE, TAO, and AVAX.
This influx of new tokens, particularly the significant cliff unlock of 44 million tokens valued around $190 million in late July/early August 2025, is expected to exert significant selling pressure and short-term price volatility on the SUI market. Historically, such large unlocks have triggered sharp but often temporary price declines or swings before stabilization.
The late July to early August unlock wave for SUI alone releases approximately 1.27% of total supply, making it one of the largest single unlock events by dollar amount. This influx of tokens can increase liquidity pressure, prompting some holders to sell, driving downward price pressure or volatility.
However, it's worth noting that while prices may experience sharp drops around these unlock dates, they often recover and stabilize afterwards, as markets absorb the new supply. Daily linear unlocks continuing through August also contribute a steady "drip" of new supply, which can sustain background selling pressure and affect price if demand does not keep pace, especially in low-liquidity conditions.
Amidst this expected volatility, institutional activity in SUI is growing. Nasdaq-listed Mill City Capital has committed around $316 million to a SUI-focused treasury strategy this month, a testament to the growing interest in the cryptocurrency.
The rising supply in a consolidating market may put downward pressure on the price of SUI. However, strong buying activity and renewed investor confidence could help push the price of SUI back up.
Technical analyst Ali Martinez has noted that SUI's price has formed an inverse head and shoulders pattern, which may indicate a bullish reversal above $4.45. This could signal a potential reversal in the coming week, making SUI, along with ALGO and AVAX, worth watching for a potential price upturn.
Analysts urge caution and transparency during these unlock periods, since speculative activity and lack of official mitigation guidance can amplify volatility for SUI and similar Layer 1 tokens. As always, it's crucial for investors to conduct thorough research and make informed decisions based on their risk tolerance and investment goals.
