- Sui fell almost 21% since the beginning of May peak, where bulls repeatedly did not support support.
- The recent unlock of 44 million token could go one of the two ways.
Sky [SUI] Started June with his usual token discharge, in which 44 million tokens dropped, on the market for an amount of 2% of the total offer.
Of course this raises the question: how good is the market to deal with all the new supply? From a technical perspective, the timing is rough.
After a peak at $ 4.15 early May (finally out of four months below), Sui slipped nearly 21%. Even Bitcoin [BTC] Hitting fresh all-time highlights could not cause meaningful jump.
What else is telling? Every time the bulls have tried to push back, they were knocked down. Three attempts to build a solid support basis have all failed. It is clear that the bears are now carrying out the show.
Source: TradingView (SUI/USDT)
With price action this jerky, the Recent 44 million SUI Disconnecting could go in one of the two ways. If the strong question of the bid starts, we could see that shorts are caught on the wrong foot and a juicy short squeeze unfolds.
But if that question doesn’t pop up? A deeper retracement is absolutely on the cards. And with support that looks shaky, a slip below the $ 3 marking is not excluded.
Sui’s activity on the chains means a growing split
According to Data from cryptoquantSui’s 90-day spot-taker CVD has turned Green for the first time since the ‘Trump Pump’ last year.
It is the same increase that SUI catapulted in January to its peak of $ 5.36.
A green CVD is a sign of real buying pressure that returns to the spot market after a long dry spell, indicating that investors start to accumulate Sui again.
Source: Cryptuquant
But the plot is getting thicker – since May 22, Sui’s Futures Taker has CVD Remained stubborn redThe reflection of persistent sales pressure as shorts on further disadvantage.
This divergence creates a classic bullish setup. Spot bulls gather while the Futures Shorts are piled up and reached the market for a potential short squeeze.
In particular, the recent 44 million token -deflecting support seems to have restored a meaningful bid support.
If the question persists, Sui could quickly test resistance near $ 3.50, so that the road was acquitted for a push to $ 4 in the short term.
Credit : ambcrypto.com
