SUI Cryptocurrency Faces Potential Price Drop Amid $50M Token Release
SUI Token: Is another price slump imminent?
SUI, a cryptocurrency based on the decentralized Layer-one (L1) blockchain Sui Network [SUI], could be facing another price slump. The reason for this is the upcoming release of millions of tokens worth nearly 50 million US dollars. This event is scheduled for November 28.
Why could the price fall?
The release of tokens can have a significant impact on the price as it causes inflation. As a result, the value of the respective cryptocurrency decreases. After the release, 17.74% of the total SUI supply would be in circulation. The price trend is already showing signs of an impending decline. Currently, the value of the 79th most valuable cryptocurrency is at 0.60 US dollars, following a drop of 5.32% in the last 24 hours.
Forecast: SUI below 0.60 US dollars?
The Money Flow Index (MFI) of SUI has dropped to 35.10. The MFI fluctuates between zero and 100. Values above 80 indicate that an asset is overbought, while values below 20 indicate an oversold condition. Although SUI is neither overbought nor oversold, the decline in the MFI suggests that the majority of the trading volume is due to selling pressure. If this trend continues, SUI could drop to 0.56 US dollars.
SUI’s social dominance is rising
SUI’s social dominance, measured by the discussions about the project compared to other assets in the top 100, has risen to 0.40%. This could suggest that SUI is currently not being traded at a fair price. However, this assumption is based on current market conditions. Therefore, the local high could be at 0.68 US dollars – a value that SUI reached on November 25.
Market participants not bullish
According to the Weighted Sentiment, which measures positive and negative comments about a project on social platforms, the sentiment of market participants is currently not bullish regarding the short-term price development of SUI.
Sources
This article is based on information from AMBCrypto and Santiment.
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