SUI Records Substantial 120% Price Surge, But Insider Selling Claims Raise Red Flags
15 Octobre 2024 - 1:00PM
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Layer 1 blockchain protocol Sui (SUI) has made headlines recently,
recording an impressive 120% increase over the past 30 days,
allowing the protocol’s native token SUI to outperform the top 10
largest cryptocurrencies on the market, culminating in a new
all-time high of $2.35 on October 13. However, since this
peak, the token has retreated by nearly 5%, largely due to growing
concerns over allegations of insider selling among the project’s
stakeholders. Can SUI Match Solana’s Success? Market expert
LightCrypto took to social media platform X (formerly Twitter) on
Sunday to express his skepticism about the sustainability of SUI’s
recent gains. In a lengthy post, he noted SUI’s substantial rise,
which has quintupled from its previous lows of $0.5 on August 5,
amid the broader market crash that occurred that day. While
the market appears to be eager for new winners, with macroeconomic
conditions pointing to further price gains, LightCrypto raised two
critical points that could undermine SUI’s upward trajectory.
Related Reading: Dogecoin Buy Signal Hints At Upside As Funding
Rate Keeps Rising Firstly, the expert questioned the rationale
behind SUI’s current $23 billion fully diluted valuation (FDV),
particularly when compared to Solana’s $73 billion according to
Coingecko data. LightCrypto argued that it no longer makes
sense to assume SUI can replicate Solana’s success, especially
given that it currently trades at just a quarter of Solana’s market
valuation. The expert further challenged the community to
articulate a compelling risk-reward scenario that justifies such a
disparity, asking whether SUI has demonstrated even a fraction of
Solana’s potential. Potential Market Correction Looms Secondly,
LightCrypto alleged the worrying trend of insider selling,
indicating that insiders, including what is believed to be a large
endowment fund, have dumped around $400 million in tokens during
the recent rally. The expert noted that this selling trend
has not only occurred at higher price levels, but has also been
ongoing since much lower valuations. Ultimately, LightCrypto
believes that the acceleration of these sales may create a
disconcerting atmosphere for retail investors, who may be buying
tokens from those best informed about their true value. Related
Reading: Why Isn’t XRP Price Moving? Crypto Pundit Claims The
Answer The implication is stark: as these supposed insiders cash
out while retail investors chase momentum, the potential for a
market correction looms large, potentially threatening the token’s
current rally. Despite these allegations, SUI, currently
trading at $2.24, continues to see significant investor interest in
the token, with trading volume up 36% in Sunday’s session, valued
at approximately $1.7 billion. Furthermore, regardless of
LightCrypto’s troubling findings, corrections are normal after a
token hits a new record high, with the clear example of Bitcoin
(BTC), which has been unable to come close to that level since
hitting a new record high of $73,7000. What is certain is
that if the expert’s claims prove to be true, it could further
exacerbate a potential correction in the SUI price, with the first
major support level for bulls being the $2.046 area. Featured
image from DALL-E, chart from TradingView.com
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