SUI Gets A Bear Introduction On Day 2, Will Sell Pressure Continue?
Yesterday marked a new dawn in the crypto industry as the SUI Layer 1 blockchain launched on Mainnet with its hyped native token SUI. The news of the token launch on major exchanges brought excitement to the crypto community, and SUI did not disappoint as its native token rallied massively, recording over 2,000% in the first hour of listing.
The layer 1 blockchain token was seen to hit the $2.16 mark at the time of its launch and listing on exchanges before it retraced due to selloffs.
However, while crypto investors have been drawn to the opportunities and price potential a layer 1 blockchain token can offer, SUI has temporarily failed to continue its price rally on day 2 of its listing. Bears have sent a welcome message.
SUI Token Price Falls Short On Day 2
The Sui layer 1 blockchain token has experienced a price decline in today’s trading session after a significant rally that followed its launch and listing yesterday on major exchanges.
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According to trading data reports from Coingecko, the native token, which trades at $1.33 at the time of writing, is on a negative 38.46% from its 24-hour all-time high of $2.16.
Bears are seen to take over in today’s trading session as the token struggles to hold the price on its red candle on the daily timeframe.
Why Is The Ethereum Killer Falling In Price
The recent price decline of the layer 1 blockchain token may be attributed to selloffs from holders and traders who took part in the SUI recognition sale. Weeks earlier, before the mainnet and token launch, SUI had announced a community access program to enable its community members to receive its native tokens in the “early phases of the network’s life.”
Instead of carrying out airdrops as rewards, the SUI Foundation proposed a recognition sale for its user champions and network supporters. Community members and users eligible for the recognition sale were reported to have met specific requirements as stated by the foundation.
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Eligible community members were required to register on a participating exchange, which would then notify them via email on how to purchase the allocated SUI tokens. Bybit, a participating crypto exchange for the recognition sale, made available 1,500 SUI tokens at a unit price of $0.03 for each eligible user purchase.
At this price, each eligible user purchased and received allocations of 1,500 SUI tokens at a total price of $45 before the public listing on May 3, 2023.SUI, upon launch, rallied massively, and at a high of $2, crypto traders who participated in the recognition sale made around $3,000 from their $45 investments.
As it is with airdrops and community recognition sales, the price of the reward token is subject to temporary retracements and price dumps due to selloffs and users cashing out their rewards. While SUI may experience selling pressure, it is important to note that the hype surrounding it is very much active as some call it the Ethereum killer and, as such, may recover in price.
Bitcoin’s price movements also have a major role and effect on the price direction of many altcoins, including SUI, and may dictate if selling pressure continues.
BTC Price dips after testing resistance at $29,200, dragging some alts with it | Source: BTCUSD on TradingView.com
Featured image from Coingo, chart from TradingView.com
Source: NewsBTC.com
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