SUI Declines 3% as $144M Token Unlock Spurs Selloff

Core Insights - The SUI token of the Sui network experienced a 3.3% decline in value, dropping from $3.32 to $3.21, indicating a confirmed downward momentum as it broke through the $3.26 support level [1] - The broader crypto market, as measured by the CoinDesk 20 Index, also saw a decline of approximately 2% in the same timeframe [1] Trading Activity - Transaction volumes significantly exceeded the daily average of 6.9 million, indicating coordinated selling by large holders [2] Token Unlock Events - SUI Corporation is initiating a $143.9 million token unlock, releasing 44 million tokens between September 29 and October 6, contributing to market pressure [3] - This token unlock is part of a larger trend, with over $773 million worth of cryptocurrency vesting events occurring in the same week, including significant unlocks from other projects like Ethena ($126.8 million), Eigen ($68.6 million), and Optimism ($21.3 million) [3] Market Sentiment - Traders are facing concerns regarding both technical weaknesses and the influx of new supply, which could further depress prices even if demand remains stable [4] - The critical test for SUI will be whether buyers can maintain the $3.20 support level amidst ongoing unlock cycles [4]