Over the past 24 hours, the SUI price has seemingly hit a wall amid significant $400 million insider trading allegations, shaking investor confidence in the asset.
This interrupts what has been a strong week for SUI, up 11.0% since last Tuesday in an extension of a massive 120% rally, positioning it as one of the frontrunners this month.
Indeed, there has been a noticeable shift in investor sentiment towards SUI, with a notable 22.27% drop in trading volume to $946 million over the past 24 hours.
SUI Insider Trading Allegations
These allegations stemmed from an October 14th X post by pseudonymous crypto analyst Light, who challenged SUI’s current valuation, arguing that the notion of it following in Solana’s footsteps “no longer seems tenable.”
At the center of the controversy were claims of insider trading, with Light revealing that insiders, including a wallet tied to the foundation, profited significantly from the rapid price surge through a $400 million sell-off.
According to Light, insiders “began selling material amounts at much lower prices and are even accelerating their selling at these more elevated levels.”
In response, Sui issued a statement on X denying any wrongdoing. They emphasized that insiders have not engaged in “pre-emptive selling or violation of lockups.”
Instead, Sui attributed the sell-off to an “infrastructure partner” who is in compliance with lockup schedules enforced by qualified custodians.
SUI Price Forcast: Is Sui in the Clear?
While there may be no definitive evidence of foul play, speculation that insiders might be cashing out has raised doubts about SUI’s long-term outlook.
These doubts put recent bullish technical developments on the SUI price chart under scrutiny, particularly following a successful breakout of a cup and handle pattern.
SUI / USDT 3D chart, cup & handle pattern. Source: Binance.Concerns are heightened by a troubling Relative Strength Index (RSI), which currently stands at 80, indicating an overbought condition that makes a potential correction credible in the near term.
These worries echo skepticism about whether SUI’s fully diluted valuation (FDV) of $23 billion is justified, with Light questioning whether the project has genuinely “shown a quarter of the potential of Solana.”
Therefore, it would be reasonable to expect a correction in the near term, making the upper bound of the pattern at $2.0725 a critical level.
However, additional challenges could threaten further retracement, particularly with a $114 million token unlock scheduled for October 23rd, which represents 2.32% of the circulating supply. Notably, over 28% of the total SUI supply is already unlocked.
On the optimistic side, if SUI manages to maintain a decisive breakout of the pattern, a conservative price target of around $3.75 by 2025 is plausible. Moreover, the exponential growth and adoption of the Sui ecosystem lend credibility to a more significant price surge, potentially reaching $5.
While Sui could continue its bullish momentum, the large-scale selling raises significant concerns for new investors. According to Light, there is “only one ending” for tokens where insiders are selling to retail investors.
This New Opportunity Has Higher Gains Potential
While SUI’s future potential becomes uncertain, investors might find solace in diversifying into other high-gain opportunities. The leading narrative surrounding a “meme coin supercycle” makes newer low-cap meme coins with exponential growth potential particularly appealing.
Specifically, Crypto All-Stars ($STARS) presents a unique opportunity by pioneering the industry’s first meme coin staking platform.
The MemeVault brings together the entire meme coin community under the Crypto All-Stars umbrella, staking to earn rewards in the project’s native token, $STARS.
This allows the most dedicated meme coin holders to stay true to their favorite coins while capitalizing on the gains staking offers.
Something which may be credited to its instant success, raising almost $2.5 million in its presale already!
Beyond its pioneering approach to meme coin staking, $STARS itself offers one of the biggest passive income opportunities right now, with a lucrative 637% APY.
While the market wanes amidst recent volatility, All-Star investors are raking in consistent gains!
Join the Crypto All-Stars community on X and Telegram to stay up to date on the latest announcements.
BUY $STARS NOW
The post SUI Price Forecast: Allegations of $400M Insider Sales Loom Over 120% Rally – What’s Next? appeared first on Cryptonews.
