The SUI blockchain protocol has captured attention with a remarkable 120% increase over 30 days. Its native token, SUI, reached a peak of $2.35, outperforming major cryptocurrencies. However, it's now dipped by nearly 5% due to insider selling allegations.
Market analyst, LightCrypto, expressed skepticism about the sustainability of SUI's gains, comparing its valuation to Solana's. He challenged assumptions of SUI replicating Solana's success, citing its $23 billion fully diluted valuation against Solana's $73 billion.
LightCrypto also highlighted insider selling concerns, with significant token sales reportedly amounting to $400 million during the rally. This trend could create discomfort among retail investors, who might be buying from well-informed insiders.
Such activities hint at a potential market correction threat, casting doubt on SUI's current momentum. Despite these issues, the token continues to draw investor interest, with trading volumes up 36% to $1.7 billion on a recent Sunday.
Corrections are common after record highs, as seen with Bitcoin's challenges after its peak. If LightCrypto's claims hold, it could amplify the correction risk for SUI, with $2.046 as a key support level.
