Sui's bullish flag indicates a potential spike towards a new record high.
Sui Token Continues to Tread Cautiously Post 16% Slump
Following a 16% drop from its monthly high, Sui, a rapidly expanding layer-1 network, is currently trading at around $3.50, underperforming its top cryptocurrency counterparts.
The decline appears to persist as both technical and fundamental indicators suggest the potential for a bullish breakout in the coming days. In a bid to alleviate the aftermath of the recent Cetus Protocol exploit, which resulted in a $223 million hack, the Sui Foundation has extended a secured loan to Cetus Protocol to help recoup the lost funds.
These funds were moved from Cetus to Ethereum addresses, and Cetus is now rallying for the Sui community's support to vote on the release of frozen assets, worth about $162 million.
Additionally, interest in exchange-traded funds (ETFs) linked to Sui is on the rise. Applications have been filed by both 21Shares and Canary for a spot Sui ETF, with hopes that the Securities and Exchange Commission (SEC), under the leadership of Paul Atkins, will approve most of the applied altcoin ETFs by year's end. This development may lend a bullish edge to Sui, as it would allow more sophisticated institutional investors an opportunity to invest in the asset.
The DeFi Llama data shows that the total value locked (TVL) in Sui has started to rebound after last week's steep decline. The current TVL stands at 693 million SUI, equating to $2.47 billion in US dollars, while the stablecoin market cap has stabilized at $1.02 billion.
In the realm of technical analysis, Sui has formed a descending channel following the Cetus hack. This channel could be the flag section of a bullish flag chart pattern, a common continuation signal. As of now, the price remains above the 50-day and 100-day exponential moving averages, signaling that the bulls still control the market. The price has also retested the 38.2% Fibonacci retracement level, indicating a positive technical outlook.
With these factors in mind, it can be postulated that SUI is likely to bounce back, with an initial target at $4.2648, which is the monthly high and a 23.6% retracement level. A breach of this level could signal further upward momentum, potentially pushing the price toward the all-time high of $5.3735, representing a 50% gain from the current levels.
Meanwhile, XRP is edging closer to a four-month low, with a death cross looming against Bitcoin.
In summary, the Sui token finds itself in a precarious yet resilient position. Despite the recent slump, the potential for a bullish breakout remains, as long as the price can surpass key resistance levels and navigate any risk factors - such as hacks and market volatility. Institutional interest, DeFi growth, and strong technicals are all contributing to the positive momentum emanating from the Sui ecosystem.
- Despite a 16% drop from its monthly high, Sui, a layer-1 network, is still trading around $3.50, despite underperforming top cryptocurrencies.
- The Sui Foundation has extended a secured loan to Cetus Protocol, affected by a recent hack, to help recoup lost funds, with intention to vote on the release of frozen assets.
- Interest in exchange-traded funds (ETFs) linked to Sui is rising, with applications filed by 21Shares and Canary for a spot SUI ETF, hoping for SEC approval to attract institutional investors.
- The total value locked (TVL) in Sui has started rebounding after a steep decline, with the current TVL standing at 693 million SUI, equating to $2.47 billion in US dollars.
- Meanwhile, XRP is approaching a four-month low, with a death cross looming against Bitcoin, while SUI navigates potential bullish breakouts, resilient in the face of hacks and market volatility.
