Sui (SUI) is set to undergo a significant token unlock event on January 1st, with approximately $82.8 million worth of tokens entering circulation. This monthly unlock event is expected to add substantial sell pressure to the altcoin, potentially hindering any attempts at a bullish trend reversal, according to an AMBCrypto report.
The news follows a previous unlock event involving $78.9 million in SUI tokens, which had already shifted investor focus and market sentiment. Analysts note a lack of direct commentary from Sui officials or key crypto figures regarding these developments, leaving the market to speculate on the long-term implications.
From a technical perspective, SUI was trading at $1.50 at the time of the report, having recently pushed above a key mid-range resistance level of $1.49. This level is part of a trading range established since November, spanning from $1.30 to $1.68. A successful flip of the $1.49 level to support could signal a potential rally toward the range high of $1.68.
However, several on-chain metrics cast doubt on the sustainability of the recent price bounce. The On-Balance Volume (OBV) indicator has been moving sideways without a clear upward trend, and trading volume has remained well below its 20-day moving average for the past two weeks. This suggests weak buying pressure from SUI bulls.
Analysts warn that the looming token unlock creates a high-risk environment for bullish traders. The recommended strategy for most traders is to remain sidelined, waiting for a confirmed breakout above the mid-range resistance to fail before considering short positions. A drop below $1.43 would signal a bearish structural shift, invalidating the short-term bullish scenario.
The event is viewed as part of a broader industry trend of increased token activity and investor engagement. In the absence of official data, market participants are relying on historical pricing trends and speculative forecasts to gauge potential outcomes, with experts continuing to review the financial implications for investor confidence.
