SUI joins the rest of the industry in posting dismal performance hours after the reciprocal tariff announcement. But tariffs aren’t the only thing dragging SUI down, we look at the other SUI price drivers below.
On Thursday, April 3, SUI’s price crashed by 10% and momentarily dropped to $2.20 – for the first time in three weeks.
The crash was in with a market-wide contraction that saw the industry’s market cap drop by 5% to reach $2.62 Trillion. The recent crash now ensures that SUI remains firmly pinned down below $2.5.
Why Is SUI Price Falling?
The above-average losses reported by SUI in the last 24 hours may be attributed to two key factors. First is the market shock that followed the announcement of Liberation Day reciprocal tariffs by President Trump.
Although the tariffs were not as harsh as anticipated, they still forced the market to contract as they raises fears of global inflation and trade wars between US and her trading partners.
The loss can also be attributed to the injection of 64.19 million SUI tokens, equivalent to 2.03% of current circulating supply and worth approximately $150 Million than into its already bloated market. Such a massive unlock typically has two consequences to the digital asset.
First, they tend to dilute the value of the existing coins. Secondly, they create a selling pressure that, in turn, forces the altcoin to assume a downward price action.
In the case of SUI, these coins have been locked for the larger part of the coin’s existence, implying that most of their holders will be looking to sell to lock in profits.
What is SUI’s Next Price Action?
Over the long run, we remain bullish about SUI’s future performance. Our analysis shows that it will eventually rebound, rallying by as much as 400%, in line with the market recovery and peak at around $8.80 before year end.
From a technical perspective, SUI prices have been on a downtrend for close to four months – since hitting the current all-time high in early January. Further, the altcoin has printed a bearish flag pattern.
This, and the absence of enough bullish momentum to force a breakout suggests that SUI will continue trading sideways in the medium-to-short-term future. It will most likely remain range-bound between $2.20 and $2.50.
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