Investing.com | Editor Ambhini Aishwarya
Published Oct 03, 2023 02:00AM ET
The value of SUI, a digital asset in the cryptocurrency market, has seen a significant decline this Tuesday, dropping to $0.46 from above $0.5. This downward trend comes in anticipation of imminent token unlocks in the crypto market amounting to $36 million, which are expected to exert further downward pressure on crypto prices.
Despite a 7.7% decrease in its value within the past 24 hours, the Relative Strength Index (RSI), a key technical indicator used by traders, hints at a potential rebound for SUI. Yet, today’s unlock event is likely to inject an estimated 35 million SUI tokens worth over $16 million into circulation, potentially exacerbating the bearish trend.
This unlock event is part of a series of impending token unlocks that could further depress cryptocurrency prices. With the crypto market already experiencing volatility, these unlocks may add to investor unease and contribute to price instability.
While these token unlocks can increase liquidity in the digital asset market, they also carry the risk of diluting existing token value. As more tokens enter circulation, the value of individual tokens like SUI can be adversely affected.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Written By: Investing.com
