NAIROBI (CoinChapter.com) — SUI, the native cryptocurrency of the SUI Layer-1 blockchain, has experienced a remarkable recovery, rising by 135% from its recent low. The rally began after the Grayscale SUI fund launch on Aug. 8, injecting fresh momentum into the market.
This move is widely seen as a strong endorsement of SUI’s long-term potential, leading to a surge in investor interest and trading activity.
The Grayscale SUI fund launch had a swift and powerful effect on the market. By Aug. 13, SUI’s price had risen to $1.01, and Open Interest had jumped to $256.39 million—a 296.49% increase from $56.95 million on Aug. 7. This surge in Open Interest, along with a 125.23% increase in trading volume to $3.08 billion, indicates that traders are increasingly confident in SUI’s continued price growth.
SUI Price Action and On-Chain Metrics Indicate Further Upside Potential
Key on-chain metrics further support the bullish momentum surrounding SUI. Alongside the surge in Open Interest, SUI recorded a net inflow of $7.71 million on Aug. 12, suggesting strong investor accumulation. This positive netflow indicates that more capital is entering SUI than leaving, reinforcing the asset’s upward trajectory.
Moreover, the Open Interest-weighted funding rate has remained relatively stable, suggesting that long positions are not being excessively over-leveraged, which could help sustain the current bullish trend.
The SUI price action has been particularly notable compared to Bittensor (TAO), another asset included in Grayscale’s new trusts. While TAO experienced a temporary rally before retracing, SUI has continued its upward trajectory, with gains exceeding 108% within six days.
Supporting these bullish sentiments, SUI’s long/short ratio has become increasingly balanced, with 49.67% of market participants holding long positions and 50.33% shorting the asset. This equilibrium suggests a highly contested price level, where any further gains could trigger a squeeze, pushing prices higher.
SUI Could Hit $1.70 if Key Resistance Breaks, Analysts Predict
As of Aug. 13, 2024, SUI is trading at around $0.9795, up 3.60% in the past 24 hours. The market cap stands at $2.54 billion, with a 24-hour trading volume of $739.05 million (up 75.33%). The price is nearing the critical $1.00 level, with potential resistance at $1.10 and $1.20, while support lies at $0.85 and $0.70.
After finding support near $0.4868 in late July, SUI began its upward move, breaking through key resistance levels, including the 20-day Simple Moving Average (SMA). The price reached $1.0165 on Aug. 13, surpassing the upper Bollinger Band before pulling back to $0.9812.
The Relative Strength Index (RSI) rose from oversold levels to 65, signaling growing bullish momentum. However, as the RSI nears overbought territory, SUI could face short-term resistance.
A close above $1.016 could pave the way for gains toward $1.1 and $1.2. Conversely, a break below the middle Bollinger Band, currently at $0.75, could see the price retesting the $0.487 support zone.
According to Raoul Pal, SUI must break its downtrend versus Solana (SOL) to establish itself as a credible long-term investment.
Meanwhile, prominent trader CRYPTOWZRD predicts that SUI could surge to $1.14 and potentially hit $1.70, provided it breaks through the current resistance.
SUI’s upcoming token unlock on Sept. 3 will release 83.88 million tokens or 0.84% of the total supply. This event could increase volatility, potentially driving the rally or triggering a pullback.
