Like most stocks in the market, SUI was not spared and significantly fell on Oct. 4 to become the biggest loser of the day, falling by more than 15%. Following the high price of $1.97 on its intraday chart on the 3rd of October, the token prices fell to an intraday low of $1.62. The decline in its market capitalization took it from $5.46 billion to $4.45 billion. Currently, SUI has gone up but is still at $1.78, -4% of its value within the past 24 hours, with a market capitalization of $4.92 billion (as of October 2022).
Token Unlock and Market Volatility
SUI’s price declined right after the unlocking of the 64.2 million tokens on 1 October, which account for 2.4% of the total circulating SUI supply. Token unlocks have a tendency to induce volatility mainly due to early investors or team members cashing on tokens to earn profits. But, with such a huge unlock, SUI price correction was still limited possibly due to generally positive market sentiment after the stock popped 115% in September.
Speculation on Profit Rotation to Aptos
During the price correction, traders moved profits from SUI to Aptos (APT), another peer high-performance layer-one blockchain protocol. Such rotations are most frequent when traders search for a quick buck in the highly liquid and rather speculative crypto space.
SUI Ecosystem Growth
However, SUI’s ecosystem of species quickly grows day by day during this current volatile year. According to DefiLlama statistics, the SUI’s total value locked grew to $1 billion, from the previous $383M in August. This rise has put SUI ahead of Polygon Matic and Avalanche when measured in terms of Total Value Locked (TVL).
The recent factors that have contributed to this growth include the Grayscale launching of the SUI Trust in September and SUI’s entry to blockchain gaming, entering a partnership with Mysten Labs and Playtron for the SuiPlay0X1 gaming console. Moreover, the company intends to onboard USDC for the SUI blockchain, taking its possibilities in the DeFi sphere to a new level. In addition, the collaboration with Atoma decentralizes AI operations at SUI, expanding AI-enabled NFT applications and automation in DeFi.
Signs of Recovery for SUI
From a technical point of view, SUI also appears to have signs of increasing again. On the daily chart, SUI is hovering slightly above the middle Bollinger Band (BB) at $1.55, affirming a bullish view. In fact, the Relative Strength Index (RSI) is near the overbought level, and the Average Directional Index (ADX) has reached 54, indicating a strong trend. The MACD also reveals that the bulls are in control of the price action.
However, if the upward movement persists, $2 will play the role of the next resistance point. A sustained bullish run means $SUI could set its sights on the $2.17 it touched as an all-time high, thus up 19% from current levels.
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