Assessing how SUI, DYDX will react to their upcoming token unlocks
- SUI was already down by over 6%, and metrics were bearish.
- DYDX continued to remain bullish, and indicators were in the buyers’ favor.
After a long wait, the crypto market registered an uptick over the last few days, allowing several cryptos to push their values up. Amidst this market condition, Sui [SUI] and Dydx [DYDX] are set to unlock new tokens on 3 October, which could have a negative impact on both tokens’ prices.
Read Sui’s [SUI] Price Prediction 2023-24
SUI and DYDX are awaiting unlocks
Token Unlocks’ recent tweet revealed that both SUI and DYDX were expecting a fresh round of token unlocks on 3 October 2023, which will inject new tokens into the market.
SUI will unlock nearly 4% of its total supply, which is worth more than $17 million. On the other hand, DYDX will release 1.2% of its total supply, which is worth over $4.4 million.
$37.72m unlocked this week ?️?
10 tokens have cliff unlocks this week.$SUI 4% – $17.14m$IMX 1.8% – $11m$DYDX 1.2% – $4.44m$NYM 2.3% – $1.41m$HFT 1.8% – $1.13m$LQTY 0.7% – $0.71m$GLMR 0.4% – $0.70m$TORN 11.6% – $0.56m$GAL 0.9% – $0.54m#1INCH 0.03% – $79k
( % of… pic.twitter.com/WlqHli0G7n
— Token Unlocks (@Token_Unlocks) October 2, 2023
Generally, token unlocks are often followed by price drops because of the demand-supply theory. As circulating supply increases, an asset’s demand drops, which causes a decline in its value.
Therefore, a closer look at both tokens can provide a better understanding of what to expect from them in the days to follow.
SUI has challenges to address
According to CoinMarketCap, SUI’s price has already dropped by more than 6% in the last 24 hours. A look at the token’s metrics suggests that things can get even worse.
For example, its trading volume has dropped over the last few days. Development activity around SUI also plummeted last week. Sentiment around SUI remained negative, which was evident from the drop in its weighted sentiment.
However, its social dominance spiked, reflecting its popularity in the crypto market.
DYDX remains bullish
While SUI’s metrics raised alarms, DYDX acted differently. As per CoinMarketCap, DYDX was up by more than 2% in the last 24 hours. At the time of writing, the token was trading at $2.08 with a market cap of over $381 million, making it the 82nd largest crypto.
The good news was that DYDX’s trading volume also surged by more than 100% in the last 24 hours, which acted as the foundation of the surge.
It was interesting to note that while DYDX’s price surged, Spartan Group deposited 500,000 DYDX on Binance, which was worth more than a million dollars. Spartan Group currently holds 737,623 DYDX, and the profit was $54.5 thousand.
Spartan Group deposited 500,000 $DYDX($1.04M) 10 mins ago.
— Lookonchain (@lookonchain) October 2, 2023
Realistic or not, here’s DYDX market cap in BTC terms
The recent deposit aside, quite a few market indicators remained in the buyers’ favor. The MACD displayed a clear bullish upper hand in the market.
DYDX’s Relative Strength Index (RSI) gained northward momentum, increasing the chances of a price uptick even after the upcoming token unlock. Nonetheless, the Chaikin Money Flow (CMF) was concerning as it registered a slight decline.