Sui Foundation Denies Insider Trading Allegations as SUI Market Experiences Trading Volatility

The Sui Foundation has denied allegations of insider trading after claims surfaced that insiders sold $400 million worth of SUI tokens during a recent price surge.

The Sui Foundation has refuted claims that insiders sold $400 million in SUI tokens during a recent price surge, following earlier reports.

According to the Foundation, the allegations surfaced without specifying any particular wallet addresses. However, the Foundation stated that it was able to identify a potential wallet that belonged to an infrastructure partner who was holding tokens under a strict lockup schedule.

The Foundation asserted that no employees, founders, or investors were involved in the alleged selling, which would have violated lockup agreements and raised concerns about insider trading practices.

Despite this development, SUI's trading behavior exhibited volatility. At press time, SUI traded at $2.21, marking a 1.47% decline over the past 24 hours. This decrease mirrored a reduction in SUI's market capitalization, which fell to $6.10 billion.

The price fluctuated, opening at $2.24, briefly peaking above $2.27, and then dropping to a low of $2.21. Despite this short-term volatility, the overall trend since August has been bullish, with the price peaking near $2.40.

A technical analysis of SUI's price movements suggested a possible short-term correction. The MACD indicator showed that while the overall trend remained bullish, buying pressure may weaken. The blue MACD line was above the orange signal line, but the shrinking histogram bars indicated diminishing momentum.

Additionally, the RSI stood at 66.98, indicating that the asset was nearing overbought territory, potentially signaling further downward pressure.

According to Coinglass data, liquidations in SUI trading have increased since early August, especially for traders in long and short positions. This surge in liquidations was directly correlated with SUI's price fluctuations.

In early September, short liquidations markedly rose as the price of SUI sharply increased, causing a short squeeze. As the price rose, short traders were forced to liquidate their positions, with this trend peaking in late September and early October when SUI hit $2.

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