SUI is trading within a rising channel, targeting $6. A bullish breakout, RSI divergence, and $2 billion TVL fuel momentum amid growing ecosystem demand.
With Bitcoin hitting a 24-hour high above $108,000, altcoins are preparing to bounce back. One altcoin showing strong underlying potential is SUI, currently trading at $3.86. Amid ongoing network expansion, SUI has formed a rising channel, aiming for the $6 level and a new all-time high.
SUI Price Analysis
On the daily chart, SUI’s price action reveals a bullish breakout from a falling wedge pattern. This breakout initiated the ongoing uptrend, accounting for a 100% surge from $1.91 to $3.86 between April 7 and May 21.
Currently, SUI is forming higher lows within a rising channel. This structure emerged after the price bounced off the 23.60% trend-based Fibonacci level at $3.30.
The bullish recovery has led to a golden crossover, with the 50-day EMA crossing above the 200-day EMA. In addition, there’s a positive crossover between the 50- and 100-day EMAs, reinforcing bullish momentum.
Adding to the case for an extended rally, the daily RSI line shows a hidden bullish divergence, forming a lower low while the price continues to rise within the channel.
Thus, technical indicators support the potential for further upside in SUI. The 38.20% Fibonacci level, serving as immediate resistance at $4.6335, represents a 20% upside if the trend holds.
With broader market recovery, the SUI bull run could optimistically reach the 50% Fibonacci level at $6.08, setting a new all-time high.
On the downside, if SUI fails to maintain support at the lower boundary of the rising channel, a retest of the 50-day EMA near $3.31 is likely.
SUI Network Expansion Drives TVL Above $2 Billion
Bolstering the bullish outlook, the SUI network continues to grow. According to SuiScan, total value locked (TVL) has surpassed $2 billion, with total transactions exceeding $10 billion.
Currently, the total number of accounts on the network is approaching 200 million. Additionally, DEX volume is on the rise. Notably, ecosystem liquidity has significantly improved, with the stablecoin market cap reaching $1.15 billion, recording a 22% increase over the past week.
This network expansion is expected to drive demand for SUI’s native token.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
