SUI Token Price Dips Following Insider Selling Rumors – What’s Next?

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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. 

Insider trading is getting common now, is SUI following the suit?

Clarification from the Sui Foundation

In response to these claims, the Sui Foundation stated the X platform, asserting that no insiders—comprising employees, founders, or investors associated with the Foundation or Mysten Labs—have sold $400 million worth of tokens during this price rally.

The Foundation emphasized that any tokens being redeemed were likely associated with infrastructure partners that comply with existing lock-up periods. They also criticized @lightcrypto for not specifying which addresses were involved in the alleged selling, stating that it could lead to misunderstandings regarding the nature of the transactions.

SUI Price Reaction

Despite these claims, SUI’s price dropped by 2% amidst the broader market rally. After achieving 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 raised caution for investors.

Martinez highlighted that the TD Sequential indicator, a tool that has accurately predicted SUI price movements in the past, is currently signaling a sell. This technical analysis suggests that the SUI price may face further declines, with some analysts predicting a potential drop of up to 43%.

Increasing Network Activity

In the meanwhile, the Sui blockchain has witnessed a surge in network activity. This uptick has largely been driven by the growing popularity of meme coin trading, which has contributed to increased engagement on the platform.

According to data from DeFiLlama, on-chain trading volume has reached approximately $200 million, reflecting robust trading activity. As a result, Sui’s total value locked (TVL) has soared to a record high of $1.13 billion, indicating significant capital inflow and solidifying the blockchain’s position in the market.