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An in-depth analysis of the recent market performance of the SUI token has yielded two interesting observations.
First, we notice that the token unlock on the 1st of each month has a significant impact on price trends. Data shows that in the days before and after the unlock date, the price of SUI tokens often experiences a noticeable decline. This phenomenon may be due to profit-taking by investors after the unlock, resulting in an increase in market supply.
Secondly, we have discovered an interesting cyclical pattern. The two upward cycles at the end of April and early July this year lasted precisely 20 days. Specifically, from April 22 to May 12, SUI rose from $2.16 to $4.29; from July 9 to 28, it increased from $2.87 to $4.44. It is worth noting that, with the monthly 0.55% token unlock, the price increase of SUI seems to be gradually decreasing.
After the recent news of the SUI treasury incident, the market reacted strongly, leading to a rare consecutive decline for 6 days. Looking back in history, the last time there was a consecutive decline of more than 6 days dates back to the 10-day decline that started on July 27, 2023.
These observations provide some references for investors, but the market is always full of uncertainty, and investment decisions need to take multiple factors into account.