SUI Price Tanks 2% Amidst Insider Selling Allegations, Despite Robust Network Activity

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 allegations of insider selling have cast a shadow over the remarkable 104% price rally enjoyed by SUI tokens. As reported by Cryptoslate, crypto analyst @lightcrypto and other parties have raised certain suspicions I am doing it.

According to @lightcrypto, wallets associated with the Sui Foundation have engaged in insider selling, with these wallets redeeming and transferring over 82.6 million SUI tokens, which are valued at around $184 million, based on current market prices.

These claims have prompted a response from the Sui Foundation, which has asserted that no insiders, including employees, founders, or investors connected to the Foundation or Mysten Labs, have sold $400 million worth of tokens during this price rally.

The Foundation has also highlighted that any tokens being redeemed are likely linked to infrastructure partners who are adhering to the established lock-up periods.

Furthermore, the Foundation has criticized @lightcrypto for failing to specify which addresses are involved in the alleged selling, as this omission could lead to misunderstandings regarding the nature of the transactions.

no insiders sold $400 million tokens during this price rally

While these claims are being disputed, SUI's price has experienced a 2% decline amid a broader market rally. Following an all-time high of $2.34 on October 14, the currency has faced setbacks due to these allegations.

Market analysts, such as Ali Martinez, have sounded the alarm for investors, with technical analysis suggesting further declines in SUI's price.

Martinez points to the TD Sequential indicator, a tool that has effectively predicted SUI price movements in the past. This indicator is currently signaling a sell, suggesting potential price drops of up to 43%, based on technical analysis.

On the other hand, the Sui blockchain has witnessed a surge in network activity, largely attributed to the increasing popularity of meme coin trading, which has led to greater engagement on the platform.

As reported by DeFiLlama, on-chain trading volume has reached approximately $200 million, indicating robust trading activity.

This uptick in network activity has contributed to a record high total value locked (TVL) of $1.13 billion for Sui, showcasing the blockchain's strong presence in the market and attracting substantial capital inflow.

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