SUI might reach $0.4140 if token sell pressure is reduced

• Cryptocurrency Sui (SUI) has seen a significant decline in value recently.
• The decline is attributed to the impending release of 35 million SUI tokens.
• CoinMarketCap data shows SUI’s 24-hour trading volume increased by over 6%.

The cryptocurrency Sui has seen a significant decline in its value in the last 24 hours. Many attribute this to the impending release of a large quantity of SUI tokens set to be unlocked in the upcoming week and throughout the remainder of October. The planned unlocking will introduce approximately 35 million SUI tokens into the market, with a total worth surpassing $17 million, per Token Unlocks’s post.

CoinMarketCap data indicates that SUI was trading at $0.4605 at the time of reporting, reflecting a decline of approximately 7.30% within the last 24 hours. This indicates that SUI was trading slightly above its 24-hour low of $0.4575, reaching a high of $0.498 within the same timeframe.

The 24-hour trading volume of SUI was recorded at $89,395,202, marking an increase of over 6% in the last day. Although the altcoin witnessed a price drop in the past 24 hours, it still registered a 4.08% increase every week.

During the previous trading session, SUI experienced a decrease of slightly more than 8%. Consequently, this altcoin’s value fell from its initial price of $0.5071, ending the day at $0.4663. The significant drop in the cryptocurrency’s value pushed it beneath the 9-day and 20-day EMA lines, where it remained at the time of reporting.

A brief bullish technical flag was activated within these two technical indicators when the 9-day EMA line surpassed the 20-day EMA line. After this, SUI’s price escalated to the subsequent resistance level of $0.5300. However, bearish traders swiftly moved to protect this level, leading to yesterday’s significant price decline.

As a result, the positive sentiment generated by the recent technical flag activation was fleeting. As of the latest update, the 2 EMAs appear to be on the verge of crossing once more, this time to the advantage of sellers. If the shorter EMA dips below the 20-day EMA line, it could indicate that sellers are gaining control. This might subsequently lead to a further decline in SUI’s price.

Should the bearish prediction materialize, the altcoin’s worth may decline to the immediate support level in the forthcoming days. Under these circumstances, SUI might plummet to a minimum of $0.4140. The bearish prediction could be nullified if SUI settles a daily candle beyond the 9-day EMA line, approximately at $0.4643, within the subsequent 48 hours.

If the cryptocurrency ends a daily trading session above the shorter EMA line, it could gain the necessary support to surpass the mentioned resistance level of $0.5300. Following this, sustained purchasing pressure could increase SUI’s price to a maximum of $0.6355 within the upcoming week.

In the coming weeks, the crypto market is expected to witness a series of token unlocks valued at $37 million. This could create a downward pressure on token prices. Generally, token unlocks are perceived negatively in the crypto space as they often lead to profit-driven selling by investors, thereby increasing the selling pressure.