Sui (SUI) Price Plunges After Listing Top Cryptocurrency Exchanges.
On May 5, the price of SUI was $1.26, down about 70% from its all-time high of about $4 on Binance two days earlier.
Interestingly, on other exchanges such as Kraken, the coin has seen market peaks of $1.6 or less, indicating that it is in the “…price discovery“After debut.
SUI/USD daily chart. Source: TradingView
However, SUI still maintains an overall market growth of nearly 1,200% compared to the beginning of its launch.
Initial SUI price
SUI’s initial uptrend was supported by traders who said that Sui is a new addition to the family of layer-1 blockchain projects that is more scalable than its competitors.
Sui’s original contributor, Mysten Labs, confirm Due to the requirement to process approximately 300,000 transactions per second, it will be the first programmable blockchain platform on the Internet. For ease of use, Solana (SOL), a serious competitor, can only handle about 65,000 transactions per second.
Venture capitalists led by a16z and FTX Ventures invested $336 million in the Sui project through two investment cycles in 2021 and 2022. Mysten Labs confirm These cycles allow investors to acquire shares in their companies instead of SUI tokens.
However, the project’s token economics model shows that it has allocated 14% of the 10 billion SUI tokens offered to investors. Mysten Labs did not disclose when they will distribute these tokens or any distribution schedule related to them.
SUI token distribution model as of May 1st. Source: Messari
In terms of FTX Ventures, Mysten Labs is a subsidiary of the now-defunct cryptocurrency exchange FTX Buy it back Shares held by the company in April 2023. Additionally, they regained the right to purchase SUI tokens previously held by FTX for approximately $96 million.
Traders and analysts believe the Sui project aims to be a compelling blockchain alternative. However, there are also concerns about the supply timetable for SUI.
Notably, the Sui Foundation plans to increase the supply of SUI by around 15% by the end of 2023, according to analyst Dmitriy Lavrov, which may cause traders to wait for the price to fall further. Re-enter the market.
Yes, it makes sense to wait for a better price.
— Dmitry Lavrov (@thedlavrov) May 3, 2023
From a short-term technical perspective, SUI prices are facing temporary selling pressure around $1.31.
A pullback scenario could lead the coin to target a short-term downside target of $1.26. Assuming the oversupply situation does play out, the price could drop to $1.21 by May 5 or by the end of the week, a 7% drop from the current price.
15-minute SUI/USD price chart. Source: TradingView
In contrast, analyst Ameba Discover The SUI closed decisively above the downtrend line resistance in May, rising to $1.50. Trader Crypto Mikey also forecast Sui price trend is similar.
- SUI faces huge post-mainnet volatility – 66% of supply is at risk of being dumped.
- FTX sold SUI token contracts at a price 1,000 times lower than today.
As reported by Cointelegraph