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01 October, 2024

SUI Surges 15% Ahead of Token Unlock: Can It Hit a New ATH in October?

01 October, 2024

SUI Soars 15% Amidst Token Unlock Speculation: Will it Reach a New ATH in October?

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SUI has been on a tear in recent weeks, surging 15% in the past seven days. This follows a remarkable performance throughout Q3, making it a standout performer in a market grappling with volatility. However, the impending token unlock event in October has sparked debate among investors. Will it fuel further gains or act as a headwind to reaching a new all-time high (ATH)?

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SUI’s Meteoric Rise in Q3: A Bullish Story So Far

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SUI’s price has skyrocketed by 114% in the past three months, climbing from $0.8 to the $1.75 range. This impressive growth stands out as most cryptocurrencies experienced downturns in Q3. SUI even defied market trends, registering impressive gains in August, including a 50% surge, a 73% recovery from monthly lows, and a 14% gain from its opening price.

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September continued the upward momentum, with SUI recording a 119% surge in the last 30 days. Crypto analyst Crypto Bullet lauded SUI’s “phenomenal” monthly performance, noting its retest of levels last seen in April and its position just 20% below its ATH of $2.17.

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Will Token Unlock Derail the Bullish Momentum?

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Despite SUI’s impressive run, the October token unlock event casts a shadow on its future prospects. This event will release 64.19 million tokens, worth $112 million, increasing the circulating supply by 2.4%. Some investors fear this could lead to increased selling pressure and dampen SUI’s rally.

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Sui Network Achievements Fuel the Bullish Sentiment

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Despite the looming unlock, positive developments within the Sui Network are fueling optimism among SUI supporters. Sui Network surpassed all other chains in daily net flows on Monday, reaching $6.8 million in positive net flows. This surpasses Ethereum’s $4.9 million and Solana’s $3.4 million. The network also boasts the second-largest daily inflows, reaching $10.3 million, second only to Ethereum’s $35.8 million.

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Moreover, Sui Network achieved the $1 billion Total Value Locked (TVL) milestone on Sunday, a significant achievement less than two years after its Mainnet launch. These milestones reflect the network’s growing adoption and potential.

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Analysts Weigh In: A Certified Beast or a Token Unlock Headache?

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While some investors remain cautious about the unlock event, others maintain their bullish stance on SUI. Crypto analyst Bluntz, known for his positive outlook on SUI, calls it “a certified beast” and emphasizes its ability to recover from dips. He attributes this resilience to SUI’s strong technical indicators and its potential for further growth.

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Bluntz’s chart analysis suggests SUI’s wave three will target the $2 resistance level before retracing to the $1.65-$1.70 support zone in wave 4, setting the stage for a wave five push towards $2.6.

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Conclusion: A Battle Between Bulls and Bears

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The upcoming token unlock event adds a layer of uncertainty to SUI’s future. While the network’s growing adoption and impressive performance continue to fuel bullish sentiments, the potential impact of the increased circulating supply remains a key concern. Ultimately, the direction of SUI’s price will depend on how the market reacts to the unlock event.

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Only time will tell if SUI can overcome the potential headwinds and break through to new highs, or if the unlock event will dampen its momentum. Keep your eye on this space for further updates.