Having increased by over 3% in the past week, Sui (SUI) continues to push towards the $5 milestone. The cryptocurrency has maintained impressive momentum throughout 2024, recording a new all-time high and outperforming many altcoins with a 521% year-to-date increase.
The network’s Total Value Locked (TVL) has surpassed $1.65 billion, which is simply another sign of growing adoption for SUI. Following a significant token unlock event introducing around $300 million worth of SUI tokens into the market, the question remains: Can SUI set a new all-time high?
SUI Ecosystem soars despite $300m token unlock
The Sui ecosystem has marked several significant achievements in recent weeks, contributing to its strong market performance. The network processed an impressive 7.5 billion total transactions throughout 2024, with peak daily transactions reaching 58.4 million and daily active wallets hitting 2.45 million.
In other news, the DeFi sector on Sui has shown remarkable growth, with Total Value Locked (TVL) expanding from $250 million to $1.75 billion by year-end. This growth trajectory coincides with the appointment of Christian Thompson, former Meta executive, and early Libra/Diem member, as its new Managing Director to spearhead the next phase of ecosystem development.
However, the network faces a significant event, with its largest token unlocks completed yesterday, releasing 64.19 million SUI tokens valued at approximately $300 million. Despite potential selling pressure from this unlock, market sentiment remains overwhelmingly bullish, with technical indicators showing positive signals.
The ecosystem’s robust fundamentals, including an average transaction fee of $0.011 – 600% cheaper than Solana and 86,000% cheaper than Ethereum – continue to attract more users and institutions to the ecosystem. These developments have collectively supported SUI’s price momentum as it approaches the $5 milestone.
SUI price analysis
SUI/USD is currently trading at $4.37, showing a minor retracement of 0.63% in the 30-minute timeframe. The price action reveals a constructive market structure, with the asset maintaining a series of higher lows throughout late December.
Looking at the chart below, the Bollinger Bands indicator displays a compression pattern, with prices oscillating between $4.28 and $4.46, suggesting a potential volatility expansion in the near term.
On the other hand, the MACD oscillator presents an interesting setup, with the histogram showing positive momentum at 0.0389 while the signal line crosses above the MACD line. This technical formation often precedes directional moves in the underlying asset. The price has established strong support at the $4.00 psychological level, which has successfully held during recent pullbacks.
Monthly Trading Chart For SUI
Volume analysis indicates healthy market participation, though recent trading sessions show decreased volatility compared to mid-December. The current price sits above all major moving averages, maintaining a bullish market structure. Key resistance levels are identified at $4.67, coinciding with the upper Bollinger Band, while immediate support rests at $4.28, aligning with the lower band.
Overall, the technical landscape suggests a period of consolidation, which typically resolves in the direction of the prevailing trend. With most technical indicators remaining bullish, the setup appears favorable for continued upward momentum so long as the current support levels hold.
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