SUI Price Stays Strong at $3 – Is a Surge to $5 on the Horizon?

SUI coin is currently maintaining its support level at $3 amidst a downward trend, indicating a possible future increase to $5. Recent events in its ecosystem, including a significant acquisition by SUI Group Holdings and growth in the DeFi sector, suggest potential positive momentum for the token.

Key Takeaways

SUI price holds steady at $3 after recent declines.
The token dropped 5% over the last 24 hours, sitting at $3.34.
Significant unlocks of tokens in August have contributed to the current downward trend.
SUI Group Holdings recently acquired 20 million tokens, reducing circulating supply.
The total value locked in SUI's DeFi protocols has increased to $3.5 billion.
Technical analysis shows an ascending triangle pattern, indicating potential upward movement.

SUI price holds support at $3, is a rally to $5 next?

Current Market Overview

SUI's price has successfully held the $3 support level during its latest downtrend, forming a bullish pattern that suggests a possible recovery to $5. As reported by crypto.news, the SUI token has seen a 5% decrease in the last 24 hours, trading at $3.34. This drop signifies a rough patch for SUI, with a notable 19.7% decline from its August peak of $4.16.

Recent large token unlocks on August 1 and September 1 released around 44 million tokens each, valued at $159 million and $143 million, respectively. This added supply appears to have diminished investor enthusiasm, with open interest decreasing by 30% since late July and funding rates dropping from 0.0615% in July to 0.0099%, according to Coinglass data.

Positive Developments for SUI

Despite the current pressures, recent developments around the SUI ecosystem may provide a boost for recovery. SUI Group Holdings, a publicly traded company focused on acquiring and managing SUI tokens, has recently acquired an additional 20 million tokens. This brings their total holdings to 101.8 million SUI tokens, currently valued at over $344 million, which helps to decrease the circulating supply and could lead to future price increases.

Additionally, data from DeFiLlama indicates that the total value locked in DeFi protocols on the SUI blockchain has reached $3.5 billion, up from $3 billion just two months ago. This growth highlights a positive trend within the DeFi sector for SUI.

Moreover, the SUI team recently partnered with blockchain analytics and compliance platform TRM Labs. This collaboration aims to implement industry-leading risk and compliance tools within the network, enhancing security for developers, institutions, and users and possibly attracting renewed interest from investors.

Technical Analysis

Analyzing the 1-week chart, SUI has been moving within an ascending triangle pattern throughout this year. This setup is characterized by a horizontal resistance line and a rising support trendline, showcasing increasing price pressure.

Currently, SUI is trading near the lower trendline at $3.10, which acts as a significant support level. A rebound from this point could propel the price towards $4.30, aligning with the upper boundary of the triangle. If the price breaks decisively above this level, it may lead to a rally targeting $6.89, representing nearly a 106% increase from current levels.

On the other hand, if bearish momentum continues and the price falls below the lower trendline, it could result in a decline to $2.31, which marks the next substantial support level.

Disclaimer

Please note that this article does not constitute investment advice. The information provided here is solely for educational purposes.