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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 15, 2024 07:01 UTC
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Sui Foundation Denies Insider Selling, But Price Takes a Hit
Allegations of insider selling by the Sui Foundation have led to a price drop despite recent gains.
The Sui Foundation denies insider selling, claiming that redeemed tokens were from infrastructure partners.
The TD Sequential indicator suggests that the SUI price may face further declines.
The SUI price has come under pressure following allegations of insider selling related to the Sui Foundation, despite a robust 104% rally over the past month. Recent scrutiny intensified when crypto analyst @lightcrypto highlighted suspicious wallet activity, indicating that wallets associated with the Foundation redeemed and transferred over 82.6 million SUI tokens, valued at approximately $184 million.
Let’s uncover the finer details below.
Insider Trading: Is SUI Following the Trend?
In response to these claims, the Sui Foundation addressed the situation on the X platform, stating that no insiders—employees, founders, or investors connected to the Foundation or Mysten Labs—have sold $400 million worth of tokens during this price surge.
The Foundation clarified that the tokens being redeemed were likely tied to infrastructure partners that follow existing lock-up periods. They also criticized @lightcrypto for not naming the specific addresses involved in the alleged selling, warning that this lack of detail could lead to misunderstandings about the transactions.
SUI Market Analysis
Despite the Foundation’s assurances, SUI’s price dropped by 2% during a broader market rally. After reaching an all-time high of $2.34 on October 14, the currency’s value has been negatively impacted by these allegations. Market analysts, including Ali Martinez, have advised caution for investors.
Martinez noted that the TD Sequential indicator—a tool known for accurately predicting SUI price movements—currently signals a sell. This analysis suggests that SUI may face further declines, with some analysts predicting a potential drop of up to 43%.
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Increasing Network Activity
Meanwhile, the Sui blockchain has seen a rise in network activity, mainly driven by the growing popularity of meme coin trading. This trend has led to increased engagement on the platform.
According to data from DeFiLlama, on-chain trading volume has reached about $200 million, indicating strong trading activity. As a result, Sui’s total value locked (TVL) has soared to a record high of $1.13 billion, showing significant capital inflow and strengthening the blockchain’s position in the market.
The next few weeks could be crucial for SUI’s fate. What do you think will happen next?
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