SUI price outlook: bulls on edge as $173M token unlock looms

Sui gained 7% in the past day to $3.94 intraday high.
A massive unlock on August 1 sparks fears of potential bearish pressure.
Holdings above $0.275 could support imminent breakouts.

Digital currencies saw mild gains on Friday as the global crypto market cap increased by 0.55% the previous 24 hours to $3.9 trillion.

While most alts signal recoveries, SUI led today’s gainers with an over 7% surge to $3.94.

The uptrend has excited enthusiasts who are watching for new breakouts.

Nevertheless, the upcoming $173 million SUI unlock on August 1 has dented investor confidence due to potential selling pressure after the massive token release.

Can the altcoin withstand the bearish storm?

SUI’s August 1 unlock

Token unlocks are usual in the cryptocurrency market, but they often trigger anxiety as they can influence short-term price actions.

Sui’s upcoming unlock isn’t an exception.

According to Tokenomist, Sui will release 44 million tokens, worth around $173 million at current prices, on August 1.

That’s a massive figure, especially considering the prevailing broad market uncertainty and SUI’s market dynamics.

Significant token unlocks flood the markets, possibly introducing substantial selling pressure when recipients offload part of their balances.

In Sui’s case, the $173 million unlock could test its current momentum.

The altcoin trades at $3.95, and participants would now closely watch the ‘reliable’ support barrier at $3.75.

The foothold has previously held strong amid pullbacks.

If SUI holds $3.75 throughout unlock-driven volatility, it would be an optimistic signal.

Healthy performance after token release will indicate impressive demand despite the surge in supply.

Such an outlook would position Sui as a maturing blockchain unbothered by short-term events.

Bulls could hold the line after July’s robust performance

The primary question remains whether buyers can maintain control amidst the supply shock.

The latest uptick to $3.94 has renewed optimism about another breakout.

However, SUI should hold above the support at $3.75 to absorb the upcoming token supply without panic selling.

Meanwhile, SUI heads into August after an impressive monthly performance, which will likely add upside steam.

Sui’s total value locked closed July with a fresh all-time high above $2 billion after stable uptrends since late June.

A surging TVL is crucial since it confirms the chain’s overall financial health, highlighting increased adoption and growth.

It is a key liquidity indicator.

More total value locked makes it easier for individuals to execute trades without substantial price slippages.

Also, SUI’s decentralised exchange (DEX) volume hit record highs of $14.3 billion in July.

SUI’s current price outlook

The altcoin displayed impressive recoveries after hitting a low of $3.69 yesterday.

SUI trades at $3.94 with a 15% uptick in trading volume, demonstrating a possible momentum shift to the upside.

Short-term technical indicators suggest a buyer comeback.

The MACD has just made a bullish crossover with the signal line on the 3H timeframe.

Moreover, the RSI at 52 suggests neutral sentiments as bulls look to flip the script.

Holding $3.75 amid the looming unlock might support uptrends to the Monday high near $4.35, opening the path to $5.