SUI Crashes 10.18% as $128M Token Unlock Floods Market

SUI, the native token of the SUI blockchain, has experienced a significant price drop following a major token unlock. On August 1, 2025, approximately 44 million SUI tokens were released into the market, representing a total value of around $128 million. The sudden influx of liquidity triggered a sharp sell-off, with the token dropping by 10.18% to settle at $3.48. This move has raised concerns among investors regarding the stability of key support levels [1].

The unlocking event has intensified selling pressure and contributed to extreme fear in the market. According to the Fear and Greed Index, investor sentiment has deteriorated to a level of 34, reflecting widespread anxiety. The market is also showing increased volatility and trading volume, reinforcing the impression of a highly uncertain environment [2]. These conditions have been exacerbated by broader market dynamics that are favoring risk-off behavior, even as institutional interest in SUI remains strong.

Notably, Mill City Ventures recently completed a $450 million investment into a SUI treasury, signaling continued institutional confidence in the project [3]. However, this optimism has not been enough to counteract the immediate impact of the token unlock. The price has struggled to regain its footing, with the RSI currently below 50 and the token trading below key moving averages, indicating that sellers continue to dominate the market [4].

Analysts have emphasized the importance of the $3.60 level as a critical support zone. A successful defense at this level could provide the price with an opportunity to stabilize and potentially rebound. If buyers manage to push the price above $3.60, the next key resistance lies at $4.05. Conversely, a break below $3.40 could signal a deeper correction and weaken the prospects for a near-term recovery [1].

The SUI unlock is part of a broader wave of token releases in August, with total liquidity events potentially reaching up to $3 billion. Other major projects, including Solana (SOL) and Fetch.ai (FTN), are also preparing to unlock large token supplies, which could further intensify downward pressure on SUI and other altcoins [5]. The cumulative impact of these events will depend on whether institutional or retail demand can absorb the sudden increase in supply.

In addition to liquidity concerns, the market has been influenced by uncertainty surrounding the SEC’s regulatory approach to crypto ETFs. Recent delays in the SUI ETF application review have contributed to a cautious investor sentiment [6]. While some remain optimistic about the token’s long-term potential—particularly with ongoing developments in cross-chain integrations—the immediate priority for investors is navigating the volatility caused by the unlock.

As the market processes this development, traders are closely monitoring price behavior at key levels. A sustained move above $3.60 would be viewed as a positive sign, potentially opening the door for a test of the $5.00 resistance level. However, if the price continues to decline and fails to stabilize, the risk of a deeper correction remains. Investors are advised to remain cautious, given the combination of short-term risks and ongoing macroeconomic uncertainties shaping the crypto landscape.

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[1] title: SUI Price Drops 10% as $128M Token Unlock Sparks Selling Pressure, (https://blockchain.news/news/20250801-sui-price-drops-10-as-128m-token-unlock-sparks-selling)

[2] title: Sui Fear and Greed Index | Multiple Timeframes, (https://cfgi.io/sui)

[3] title: Mill City Ventures Completes $450M Round for Sui Blockchain Strategy, (https://blockchain.news/news/20250801-mill-city-ventures-completes-450m-round-for-sui-blockchain-strategy)

[4] title: SUI Price Drops 9.2% Despite Strong Bullish Technical Trend - Key Levels to Watch, (https://blockchain.news/news/20250801-sui-price-drops-9-2-despite-strong-bullish-technical-trend-key-levels-to-watch)

[5] title: Crypto token unlocks may halve to $3B in August; SUI, FTN top list, (https://blockchain.news/news/20250801-crypto-token-unlocks-may-halve-to-3b-in-august-sui-ftn-top-list)

[6] title: SUI Price Drops 8% to $3.96 as SEC Delays ETF Decision and Dollar Strength Pressures Market, (https://blockchain.news/news/20250801-sui-price-drops-8-to-3-96-as-sec-delays-etf-decision-and-dollar-strength-pressures-market)