Analysts Become Optimistic on SUI as Token Gains Amid Increased Institutional Interest

Sui (SUI) has garnered fresh attention in the market after experiencing one of its most impressive breakouts in recent months, rising significantly while many large-cap altcoins remain stable.

Key Takeaways

SUI's price surged 31%, driven by Coinbase's approval for trading in New York.
Institutional demand is increasing as SUI extends its market reach.
A significant token unlock attracted buyers, showing strong market absorption.
Technical indicators suggest a potential shift in momentum for the token.
Continued volume and price stability could lead to further gains.

SUI Network SUIUSD

Sui SUIUSD Sui Network

The recent surge of 31% in SUI’s price was sparked by key developments, including Coinbase's authorization to facilitate SUI trading for New York residents, positioning the token in one of the most strictly regulated crypto markets in the U.S. Additionally, a major token unlock, which normally would drag prices down, saw buyers stepping in vigorously instead.

Impact of New York Listing on Liquidity and Demand

SUI experienced a notable rise of between 25% and 32% in just 24 hours following Coinbase's announcement that New York residents can now purchase and trade the token via its platforms. This approval enhances SUI's presence in one of the most regulated markets in the U.S., bolstering its image as a compliant layer-1 network and making it more appealing to institutional investors.

This announcement coincides with a significant event on December 1, when SUI unlocked tokens valued at approximately $82 to $86 million, increasing the circulating supply by over 0.5%. In most cases, such unlocks tend to pressure prices downwards, but SUI instead saw a price increase, indicating robust demand.

Trading volume has surged to about $1.5 billion, implying strong accumulation rather than just short-term speculation. Additionally, the introduction of USDsui, a fiat-backed stablecoin tailored for transactions and DeFi applications within the Sui ecosystem, has played a part in generating renewed investor interest. These factors combined have bolstered confidence in Sui's position in the market.

SUI's Technical Indicators Reflect a Shift in Momentum

Recent price movements indicate that SUI has bounced back from November’s low of about $1.12, climbing above the $1.60 support level. Technical indicators such as RSI and MACD suggest diminishing selling pressure and the possibility of a short-term momentum shift. Analysts believe that moving beyond the mid-Bollinger Band near $1.90 would signal a broader trend reversal.

For the first time in weeks, SUI has surpassed the Keltner mid-band, with volume delta readings showing strong demand in the spot market. The next major resistance levels are found between $1.80 and $1.95, followed by an extended range reaching up to $2.30. A significant close above $1.92 is critical to dismissing November’s downtrend.

Market analysts assert that the current rally relies on sustained demand. If daily volumes remain above $1.5 billion and prices hold within the $1.60–$1.67 support range, institutional investment could further propel the token towards the $1.90 mark. On the other hand, a decrease in volume or a drop below $1.48 might indicate that SUI has reached a temporary peak. At this moment, market sentiment remains positive, fueled by enhanced accessibility in the U.S., favorable technical indicators, and growing ecosystem activity.

Cover image from ChatGPT, SUIUSD chart from Tradingview.