The Sui (SUI) blockchain network has surged spectacularly this week, reaching its highest level since March 2. With a nearly 80% spike from its monthly low, SUI token's momentum continues to impress. What's next for SUI?
With an almost 80% surge from its monthly low, the momentum of the SUI token continues to impress.
This performance can be attributed to a massive surge in activity on Sui’s decentralized finance (DeFi) protocols. According to DeFi Llama data, the trading volume on Sui-based DEXs surged by 40% in a week, surpassing $2.7 billion.
With a daily volume of $806 million, Sui now surpasses its direct competitors such as Arbitrum ($750 M), Avalanche ($240 M), and Tron ($163 M). Key DeFi platforms in the ecosystem like Cetus, Bluefin, Kriya, or DeepBook have all witnessed significant growth in their activity.
The vitality of the Sui network also thrives on the speculative wave of memecoins. Projects like Miu (+17%), Lofi (+67%), MemeFi (+270%), Sudeng (+33%), and Blub (+70%) have witnessed explosive price surges in recent days. In total, the market cap of Sui memecoins rose by 10% in a week, reaching $182 million.
This trend demonstrates Sui’s ability to attract the attention of a web3 community fond of playful and quirky narratives. An undeniable asset in solidifying the blockchain’s visibility.
Another factor that has boosted the token’s price is the announcement of a partnership with xPortal and xMoney to launch a virtual Mastercard in Europe. This integration bolsters Sui’s positioning as a platform bridging traditional finance and Web3.
From a technical perspective, the token convincingly broke a strong trend reversal by forming a double bottom around $2.03. Breaking the neckline at $2.815 confirms this pattern, paving the way for new highs.
Technical indicators like the 50-day moving average, RSI, and MACD are also on the rise, reinforcing the bullish potential. However, a bearish divergence seems to be forming in the 4H chart, indicating a possible slowdown in the trend in the coming days.
Currently at $3.56, the token faces a strong resistance zone. To continue its upward trend, SUI will need to break above $3.73, potentially leading it to $4.25 (23.6% Fibonacci retracement).
The $4 to $4.25 zone will be the optimal profit-taking area with a potential reversal. The highest point safeguarded by smart money stands at $4.68. As long as this price isn’t surpassed, SUI remains bearish in the medium term. The last strong resistance lies at $4.45 and serves as the final barrier for the bears.
In conclusion, surpassing Arbitrum, Avalanche, and Tron with such a bullish momentum marks a shift in the current balance of layer 1 and 2 blockchains. By combining a flourishing DeFi activity, a web3 community focused on memecoins, and a gateway to traditional finance, SUI emerges as a serious player not to be overlooked in the crypto universe.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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