** SUI Price Drops 23% as $210M Token Unlock Triggers Major Selloff
Darius Baruo Aug 02, 2025 07:34
** SUI trades at $3.49 after plunging from $4.20+ highs following massive token unlock. Technical indicators show oversold conditions with potential bounce signals emerging.
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Quick Take
• SUI currently trading at $3.49 (-0.40% in 24h) • SUI RSI at 45.77 suggests neutral momentum after recent oversold bounce • $210 million token unlock on August 1st triggered 23% price decline from July highs
What's Driving Sui Price Today?
The SUI price faced severe downward pressure this week following a massive token unlock event. On August 1, 2025, Sui released 76.27 million SUI tokens worth approximately $210 million into circulation, creating immediate selling pressure that drove prices down from over $4.20 to current levels around $3.49.
This dramatic sell-off represents a 23% decline from the token's recent highs achieved just days earlier. The market had been anticipating this unlock event since July 31st, when news broke about the impending supply increase, contributing to preliminary price weakness.
Despite the recent bearish action, it's important to note the broader context. Just last week, SUI had reached an all-time high of $4.2595 on July 29th, driven by strategic partnerships, institutional adoption, and the filing of a 21Shares SUI ETF with the SEC. However, the immediate impact of increased token supply has overwhelmed these positive fundamentals in the short term.
SUI Technical Analysis: Mixed Signals Emerge
The current Sui technical analysis reveals a complex picture as the token attempts to find equilibrium after the recent volatility. SUI's RSI sits at 45.77, indicating neutral momentum and suggesting the initial panic selling may be stabilizing.
Looking at moving averages, the SUI price currently trades below key short-term levels, with the 7-day SMA at $3.77 and 20-day SMA at $3.87 acting as immediate resistance. However, the token remains above longer-term support, trading above both the 50-day SMA ($3.29) and 200-day SMA ($3.18), which maintains the overall bullish structure.
The MACD histogram shows -0.0868, indicating bearish momentum, though this may be reaching extreme levels. Sui's Bollinger Bands position shows the price near the lower band at $3.45, with a %B reading of 0.0490, suggesting potential oversold conditions that could lead to a technical bounce.
Sui Price Levels: Key Support and Resistance
Based on Binance spot market data, several critical Sui support levels are now in focus. The immediate SUI support sits at $3.35, which represents the 24-hour low and a crucial near-term floor. Below this, the stronger Sui support levels extend down to $2.29, though such a decline would represent a more significant breakdown.
On the upside, SUI resistance appears formidable at $4.44, which now serves as both immediate and strong resistance after the recent rejection from higher levels. This level will be critical for bulls to reclaim for any meaningful recovery.
The SUI/USDT trading pair shows a current pivot point at $3.48, very close to current trading levels, suggesting the market is searching for direction at these prices.
Should You Buy SUI Now? Risk-Reward Analysis
For aggressive traders, the current SUI price action presents a potential oversold bounce opportunity. The combination of Sui's RSI in neutral territory and the token's position near Bollinger Band support could signal a short-term relief rally back toward the $3.77-$3.87 resistance zone.
Conservative investors may want to wait for clearer signs of stabilization above the $3.60 level before considering entries. The recent token unlock represents a fundamental shift in supply dynamics that may require time to fully absorb.
Risk management remains crucial given the 24-hour trading range of $3.35-$3.60. Stop losses below $3.30 would help limit downside exposure, while profit targets could initially focus on the $3.80-$4.00 range.
The daily ATR of $0.29 indicates continued elevated volatility, suggesting position sizing should account for potential significant daily moves in either direction.
Conclusion
SUI price remains in a critical juncture following this week's dramatic events. While the $210 million token unlock created immediate selling pressure, the technical setup suggests potential stabilization near current levels. Traders should monitor the $3.35 support level closely over the next 24-48 hours, as a break below could target deeper Sui support levels, while a bounce above $3.60 might signal the worst of the selling pressure has passed.
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