Sui, one of the best-performing cryptocurrencies, has suffered a harsh reversal, falling for two consecutive days. It was trading at $1.9565 on Wednesday, down by 10% from its highest level this year, meaning it has moved into a correction. It remains 370% above its lowest level in August.
Sui is challenging Solana
Sui is a leading layer-1 network known for speed and low transaction costs. Launched in 2023, the network has become one of the best-performing players in the industry. It has beaten other Binance Launchpool projects that were launched at the time like Sei, Reef, and Mantra.
Sui’s performance is mostly because it has attracted more developers in industries like gaming and decentralized finance. For example, data by DeFi Llama shows that the network has 40 DeFi dApps, which have over $4.46 billion in total assets.
It has become the fifth-biggest chain in the industry, overtaking popular layer-1 and layer-2 networks like Arbitrum, Base, Avalanche, and Polygon. Most importantly, Sui is having more activity than Cardano, whose token is valued at over $11 billion.
The biggest players in the Sui network are the likes of NAVI Protocol, Cetus AMM, Suilend, and Scallop Lend.
Sui has also accumulated over $410 million in stablecoins while its performance in the DEX industry has continued doing well. Its weekly transactions rose by 50% to over $1 billion, becoming the sixth biggest network after Ethereum, Solana, BNB Chain, Base, and Arbitrum. On Tuesday, it integrated Circle’s USDC, the second-biggest stablecoin in the industry.
Sui is also aiming to become the next big player in the gaming industry, where it is working to launch the SuiPlayOX1.
Therefore, many developers will likely move to the network instead of Solana, which is known for its congestion and outages.
Sui price analysis
The daily chart shows that the SUI token price has been in a spectacular rally after bottoming at $0.4735 in August. It has soared by over 370% from its August lows and moved above the 50-day and 100-day Exponential Moving Averages (EMA).
Most importantly, it has formed a cup and handle pattern, a popular continuation sign. The recent pullback happened after the coin rose to the upper side of this pattern. This means that the pullback is part of the handle section.
The Relative Strength Index (RSI) and the MACD indicators have tilted downwards. Therefore, the most likely scenario is where the SUI token pulls back or consolidates for a while and then resumes the bullish trend.
