On December 1, the Sui blockchain experienced a major token unlock event, with $82.81 million worth of SUI tokens released into the market. This added new liquidity during a period of already weak buying activity, putting short-term pressure on the price, which was hovering around $1.50 and struggling to break the $1.58–$1.60 resistance zone.
However, SUI demonstrated surprising strength, surging 12% in the past 24 hours to reach $1.53, marking a significant recovery. Trading volume spiked by over 70% to $1.14 billion, and more than $2.4 billion in stablecoins were traded on the Sui blockchain, fueling ecosystem growth.
The decentralized finance (DeFi) sector on Sui saw its total value locked (TVL) cross $1 billion, a 4.46% increase, indicating growing investor interest. Analyst Ted Pillows noted that SUI has good liquidity above but warned that selling could trigger long liquidations around $1.40–$1.50, with key support at $1.33.
Fundamental developments are supporting long-term prospects. Grayscale launched the GSUI Trust, enabling Sui to be traded in traditional brokerage accounts, and Coinbase is set to launch SUI futures trading on December 5, which could drive short-term interest and volatility. The broader market context includes Bitcoin dominance at 58.73% and a Fear & Greed Index of 20, suggesting cautious sentiment.
Technically, SUI is trading inside a descending channel on the 1-hour chart, with the RSI near its lower range, signaling potential for a rebound. A break above resistance could target $1.80 or higher, while failure to hold support might lead to a retest of $1.20.
