#SUI struggles to reclaim $3, is more downside ahead?#

The native token of the layer-1 blockchain Sui has traded sideways over the past few weeks, raising questions about whether it will rebound or extend its losses into July.
Adding to the pressure is Sui Foundation’s latest token unlock, which saw 44 million SUI tokens, worth about $120 million, enter circulation on July 1. The unlock is part of a long-term schedule that adds over 55 million tokens each month through 2030, creating a recurring supply overhang.

SUI’s circulating supply now stands at 3.45 billion, about 34.5% of the 10 billion total supply, with more than 5.2 billion tokens still locked.

Adding to the bearish tone is a decline in open interest in SUI futures, suggesting declining trader conviction. Currently, Open Interest sits at around $1.18 billion, down from a May peak above $2 billion. This fading activity in derivatives trading points to fading confidence among market participants.

For now, downside risk remains, and traders are now watching $2.30 as key support. A decisive move below this level could further deepen losses unless sentiment across the broader crypto market shifts.
#SUI# #BTC# #ETH# #SOL#