Can SUI witness a continued rally to unlock 64 million tokens?

Layer-1 blockchain Sui (SUI) is all set to launch 64 million tokens on October 1st, which is 2.40% of the total circulating supply. SUI is seeing high investor interest as the crypto community eagerly awaits the token release.

SUI not to witness a huge failure

While token launches often lead to high volatility and sometimes price drops, the SUI price may not see a significant drop. Let's find out why.

Notably, SUI's value has increased by 115% in the last 30 days, largely due to Grayscale's decision to launch SUI Trust. Moreover, the TVL of the project reached a new high, which increased confidence in the potential of the altcoin.

On Tuesday, October 1, the project will unlock 64.19 million tokens worth more than $100 million. Usually this supply shock is accompanied by high volatility. But Bull Bear Power (BBP), which measures the strength of buyers and sellers on the daily chart, shows that the bulls are in control.

More than $1.73?

Buying pressure is very dominant, indicating that the price of SUI is likely to rise above $1.73. In addition, the amount of Sui increased to 862.48 million dollars.

Generally, an increase in buying volume will increase the price of crypto. But for that to continue, the voice must go out. But if the rate decreases as the price increases, the growth may be weak, which can be reversed.

Interestingly, in the case of SUI, the price has increased by 5% in the last 24 hours and the volume has increased by 122% in the same period. Therefore, the signal may indicate a continued rally.

The altcoin continues to show remarkable strength. However, traders should keep an eye on the $1.90 range, which has historically been a critical level for SUI prices. For example, when the price of SUI tried to hit $2 in February, it experienced a push charge as soon as it reached $1.90. Currently, the altcoin is approaching the same zone. But it may breach the range due to buying pressure.

Additionally, the 20-day exponential moving average (EMA) remains above the 50 EMA, indicating that the bullish setup is still in place, and the SUI price may continue to appreciate.

If buying pressure helps SUI break through the $1.90 resistance, the token could rise to $2.10. However, a wave of profit-taking, where traders sell commodities after the price hike, could push the price down to $1.45, negating the bullish forecast.