- Sui (SUI) is showing strong potential for reaching a new all-time high after bouncing back from key support levels and experiencing a significant increase in Total Value Locked (TVL) and decentralized exchange trading volume.
- If the upward momentum continues, SUI could retest its previous high of $2.36, with the possibility of targeting $3.15 if it breaks above this resistance.
A Promising Rebound
Sui (SUI) has been making waves in the cryptocurrency market, currently hovering around $2.08 after a significant bounce from a crucial support level. Following a challenging period where the price plummeted over 25% after reaching an all-time high (ATH) of $2.36 on October 13, SUI has shown resilience. This resurgence was marked by a 17% rally on Tuesday, igniting discussions about the potential for a new ATH in the near future.
Indicators of Bullish Momentum
Several key factors suggest that SUI is poised for further gains. First, the Total Value Locked (TVL) in Sui-based protocols has seen a remarkable increase, jumping from $892 million on Monday to over $1 billion on Wednesday. This rise indicates a growing interest in the Sui ecosystem, as more users deposit or utilize assets within its protocols. The latest data from crypto aggregator platform DefiLlama highlights this trend, showing that the TVL has reached its highest level since October 24.
In addition to the TVL increase, SUI’s decentralized exchange (DEX) trading volume has surged, rising from $96.6 million on Sunday to $204.9 million on Tuesday. This surge in trading activity reflects heightened interest and liquidity in the SUI ecosystem, which is crucial for sustaining bullish momentum.
Key Resistance Levels
SUI’s recent price action has critical technical implications. After retesting the 61.8% Fibonacci retracement level at $1.64, the price has managed to hold above this level, which coincides with the 50-day Exponential Moving Average (EMA) at $1.73. If SUI maintains this upward trajectory, traders will be eyeing a retest of the $2.36 barrier, the previous ATH. A successful close above this level could open the door for SUI to target the 141.40% Fibonacci extension level at $3.15.
Technical Indicators Support the Bullish Case
The Relative Strength Index (RSI) on the daily chart currently sits at 58, indicating bullish momentum is gaining traction. This is an encouraging sign, as values above 50 suggest increasing strength in the price movement.
Conclusion: A Bright Future Ahead?
With increasing TVL and DEX trading volume, alongside positive technical indicators, Sui appears to be on the cusp of breaking new ground. If SUI can maintain its current momentum, traders might soon witness a new all-time high, propelling SUI further into the spotlight of the cryptocurrency market. As always, investors should remain vigilant and consider potential profit-taking strategies as the price approaches psychologically significant levels like $3.00.
