sui blockchain

Sui (SUI) has been gaining attention with its recent price increase, signaling renewed optimism in the cryptocurrency market. Despite some recent market corrections, Sui is showing strong potential for a rally as it approaches its all-time high (ATH).

Sui Price Nears ATH After Bullish Growth

Sui’s price surged by 23% in September, with the bullish momentum continuing into October. On October 14, 2024, SUI nearly hit a new ATH, reaching $2.36 before experiencing a 15.15% pullback. However, investor sentiment remains positive as Sui holds steady. Currently trading at $2.00, the coin has risen 5% in the last 24 hours, with the next key resistance level at $2.10.

If the bullish trend continues and Sui breaks through this resistance, it could push towards $2.18, marking a 17% increase from its current price. Continued momentum could even propel Sui to $2.50 in the near term, signaling strong market support.

TVL Growth Points to Long-Term Confidence

One of the key factors driving Sui’s price rise is the growth in its Total Value Locked (TVL). Sui’s TVL has surpassed $1 billion, according to DefiLlama, indicating increased confidence in the blockchain’s long-term potential. This growth, along with investor enthusiasm, suggests that SUI may soon retest its ATH.

The MACD (Moving Average Convergence Divergence) indicator supports this bullish outlook, showing rising momentum and a potential buying opportunity. As long as market conditions remain favorable, Sui is well-positioned for further gains.

SUI is undergoing a notable pullback following its recent rally, with several crucial support levels now in focus. These levels will play a significant role in determining whether the asset can regain its bullish momentum or face deeper declines.

A strong defense of these support zones could trigger a fresh upward move, while failure to hold may signal further downside.

SUI Price Action: Recent Decline and Market Outlook

SUI recently faced a rejection at the $2.1 resistance level, leading to a bearish turn on the 4-hour chart. Despite this dip, the cryptocurrency remains above the 100-day Simple Moving Average (SMA), suggesting that a recovery could still be on the horizon. If buyers regain control and market sentiment shifts, SUI could quickly return to bullish territory.

The 4-hour Relative Strength Index (RSI) has dropped to 55% from its overbought zone but remains above the critical 50% mark. This positioning indicates that although there has been a slowdown, the market still holds potential for upward movement. As long as the RSI stays above this threshold, there is a chance for bulls to regain momentum.

On the daily chart, SUI shows signs of bearish pressure but continues to trade above the 100-day SMA. This suggests that the current dip might be temporary, and a price recovery is possible if buyers step in. The asset’s positioning above the SMA could help reverse the trend, pushing prices higher.

Lastly, a closer look at the 1-day RSI shows the indicator has dropped to 69% from the overbought zone, signaling further potential declines. However, if the RSI remains above 50%, a bullish comeback is still possible.

Key Support Levels to Watch for SUI

SUI is nearing crucial support levels that could attract buyers and trigger a rebound. The first key support zone is around $1.4, which could be pivotal for renewed bullish interest. If buyers defend this level, SUI might rebound toward the $2.1 resistance zone. A breakout above this resistance could lead to new all-time highs.

However, if the $1.4 support fails, the next critical area to monitor is around the $1.1 mark. This level could provide a stronger base for buyers if the price continues to decline. Holding above these support levels is crucial to prevent further bearish pressure and regain upward momentum.

On October 4, Sui (SUI) faced a sharp decline, emerging as the biggest loser in the crypto market with a 15% drop. The token fell from a high of $1.97 on October 3 to a low of $1.62, reducing its market capitalization from $5.46 billion to $4.45 billion.

Although SUI recovered slightly to $1.78 at press time, it remains 4% lower than the previous 24 hours, with a market cap of $4.92 billion.

Token Unlock and Market Impact

SUI’s price fluctuation coincided with the release of 64.2 million tokens on October 1, representing 2.4% of its circulating supply. Such unlocks can lead to volatility as early investors and team members often sell tokens to lock in profits. Despite the significant token unlock, SUI’s price correction was relatively mild, likely due to market confidence in its long-term potential, especially after its 115% rally in September.

Profit Rotation Speculation

Some analysts suggest that traders may have rotated profits from SUI to its competitor, Aptos (APT), as both are high-performance layer-1 blockchains. These shifts are common in the crypto market as traders look to capitalize on short-term gains. Despite the price dip, SUI’s ecosystem is expanding rapidly, attracting more developers and users.

SUI Ecosystem Growth

The SUI ecosystem has experienced a surge in growth, with the total value locked (TVL) reaching a new high of $1 billion, up from $383 million in August. This rise has allowed SUI to overtake well-established blockchains like Polygon and Avalanche in TVL rankings.

Several factors are driving this growth. Grayscale’s launch of the SUI Trust in September opened the door for accredited investors to invest in the token. Additionally, SUI’s venture into blockchain gaming has gained attention, with Mysten Labs partnering with Playtron to launch the SuiPlay0X1 console. Furthermore, Circle, the company behind USDC, plans to bring the stablecoin to SUI, enhancing its potential for decentralized finance (DeFi) applications.

SUI has also partnered with Atoma to integrate decentralized AI into its network, enabling the development of apps that incorporate open-source AI models. These innovations have pushed SUI to become a trending search term on Google since early October.

Signs of Recovery for SUI

Technically, SUI shows signs of regaining bullish momentum. On the daily chart, SUI is positioned above the middle Bollinger Band at $1.55, suggesting a potential upward trend. The Relative Strength Index (RSI) is nearing the overbought level, while the Average Directional Index (ADX) sits at 54, signaling a strong trend. The Moving Average Convergence Divergence (MACD) indicator also shows bullish momentum.

If the current momentum continues, SUI could break through the $2 resistance level, with its all-time high of $2.17 as the next target, representing a potential 19% gain.