SUI Token Faces Continued Pressure: Will the Downtrend Persist After Failing to Hold $3?

SUI Token Struggles in a Volatile Crypto Market

The SUI token, the native cryptocurrency of the Sui layer-1 blockchain, has been facing significant downward pressure over recent weeks. After peaking earlier this year, SUI has failed to reclaim the crucial $3 mark, trading around $2.71 at the time of writing. Despite a modest 1.4% price uptick in the past 24 hours, SUI remains over 15% lower for the month, lagging about 23% below its recent $3.50 high and trading nearly 48% under its all-time high of $5.20.

Technical Weakness and Growing Supply Impact SUI

SUI’s underperformance can be attributed to a combination of technical and supply-side challenges. The token has consistently trended downward throughout the month, breaking below its 50-day moving average and forming a persistent descending price channel. Broader market sentiment has also weighed on SUI, as global crypto assets face uncertainty following the recent geopolitical tensions in the Middle East, sparking widespread volatility and a sharp decline across digital assets.

Token Unlocks Add to Selling Pressure

Additional selling pressure emerged with the Sui Foundation’s latest token unlock. On July 1, around 44 million SUI tokens—valued at approximately $120 million—entered circulation. This token release is part of an ongoing schedule that will see over 55 million tokens unlocked each month through 2030, potentially maintaining a persistent oversupply risk in the market.

SUI’s circulating supply now totals 3.45 billion tokens, representing roughly 34.5% of the maximum 10 billion SUI supply. Another 5.2 billion tokens remain locked, poised to enter the market according to the scheduled unlocks.

Market Sentiment and Key Support to Watch

In addition to the supply concerns, open interest in SUI futures has declined, reflecting waning trader confidence. Open interest has fallen to about $1.18 billion—down sharply from its May peak above $2 billion—highlighting fading enthusiasm and reduced speculative activity in SUI derivatives.

Looking ahead, $2.30 has emerged as a critical support level for SUI price action. A decisive drop below this threshold could accelerate losses unless a significant recovery unfolds across the broader cryptocurrency market. Traders and investors will be closely monitoring both technical developments and broader macro conditions to assess near-term prospects for SUI.