Sui (Sui) – a Layer 1 project that has raised nearly 400 million USD with a team behind it including talented developers of the Diem project and the Move programming language. The price of this Layer 1 could not withstand the sharp decline of the market.
Until April, the Sui price line confirmed many bad signals and many reasons making it difficult for Sui to recover in the coming months.
Technical analysis Sui (Sui) daily frame with negative signals confirmed
It can be said that April's price decline has completely broken Sui 's price increase structure from the end of 2023 until now. The price has created a new low (Lower Low) with a decrease in amplitude of nearly 60% since the peak of over 2 USD.
Daily frame Sui technical analysis with Sonic R.- The EMA34 and EMA89 of the Sonic R indicator confirmed a negative cross in April. From here, a downtrend or sideway below the resistance of $1.43 was confirmed.
- In recent weeks, Sui recovered to near this resistance and was sold strongly. It is likely that the price has started a new decline, Sui is likely to fall to support 0.89 USD or further to the old Dip at 0.37 USD.
- Sui 's daily volume has also recently decreased sharply, no longer maintaining the Medium level of 400 million USD - 500 million USD like in the first half of April. 24h Sui volume is less than 200 million USD, which is the daily volume level. lowest of 2024.
Thus, Sui 's Dip catching force is not great. The price line has confirmed bad technical signals, suggesting that Sui 's downward trend will not stop soon in April and possibly into May.
Reasons why it is difficult for Sui to recover in Q2/2024
One of the special features in Sui 's tokenomics that differs from other Layer 1 projects is that Sui is unlocked daily with only 0.06% of the total supply (equivalent to nearly 1 million USD). This has been going on for a long time and is not a big concern for price pressure.
However, this May Sui will face a large unlock of more than 800 million Sui, equivalent to 62.1% of the supply worth nearly 1 billion USD. Many investors and holder are concerned that this unlock will seriously affect Sui prices, especially when the Altcoin market in general has not yet recovered.
Sui Token unlock schedule in May. Source: Cryptorank.According to Cryptorank, this major unlock took place on May 3 and the majority of the unlocked Sui belonged to early investors (Early Contributors and Investors). This group of people are all investors with large profits (buying Sui before going public) so it can cause selling pressure or confusion for current holders.
According to defillama, Sui is currently still in the TOP9 chains with the leading DeFi volume in the market and TOP13 in terms of total locked value of all protocols in the DeFi space with more than 580 million USD. This April, First Digital's stablecoin FDUSD was released on Sui, this is the stablecoin favored by Binance and is also the stablecoin with the fastest growing volume in the market.
Also Read: Top exchanges to buy/sell Sui (Sui)
What do you think about the above Sui assessments and predictions? Chia your comments now in our community Telegram chat | Telegram channel | Facebook fanpage .
