Sui Network [SUI], a prominent blockchain outside the Ethereum Virtual Machine (EVM) ecosystem, is witnessing remarkable progress in the digital currency market.
Renowned for its impressive transaction speed, surpassing even Solana, Sui Network is creating a buzz with its expanding Total Value Locked (TVL), now exceeding $600 million.
This rise in TVL is having a positive influence on the price of SUI, positioning it as a noteworthy player in the market. Recently, SUI has been trading above a downward trend channel on an hourly basis, hinting at a potential change in momentum.
Price movements of the SUI/USDT pair show bullish indicators, particularly emanating from the falling wedge resistance zone observed over a 4-hour period.
If this robust price movement persists, it could signify a sustained bullish trend in the long term. The price has already broken above the upper resistance of the hourly downtrend channel; however, confirmation is still pending.
Nevertheless, the volume oscillator and significant 4-hour candles indicate that momentum is favoring further upward movement.
For traders, seizing a long opportunity around the breakout point of $0.80 could potentially yield a 25% return on investment if the price reaches the $1 mark.
An analysis of the hourly timeframe suggests that the stochastic Relative Strength Index (RSI) is in the overbought territory, signaling robust buyer confidence. This presents an opportunity to capitalize on increased investments during this corrective phase.
Yet, if the SUI/USDT price dips below $0.74, traders should exercise caution and reassess their strategies, with $0.65 serving as a critical support level to monitor.
Exploring Open Interest and Funding Rates
A study of the open interest in SUI/USDT unveils five crucial zones indicating notable trader interest or disinterest.
Zones like $0.825-$0.832 and $0.891-$0.898 exhibit open interest levels of $14.59 million and -$12.409 million, respectively, signaling subdued trader engagement.
Conversely, areas between $0.84-$0.847, $0.913-$0.920, $0.971-$0.978, and $1.066-$1.073 have garnered positive interest, with particular focus on the $1 level.
Moreover, funding rates have turned optimistic, as per Coinglass data.
This metric suggests that long positions in SUI are compensating short positions, implying that SUI’s value in perpetual futures contracts remains steady, aligning with its actual market valuation.
Consideration of Token Unlocks
Keeping an eye on vested tokens and upcoming unlock events is crucial for well-informed trading decisions. SUI is among several major projects poised to release millions of dollars’ worth of tokens, which could trigger a sell-off.
Other tokens with impending unlock events include IMX, NEON, WLD, MODE, ZEUS, and GAL, as reported by CryptoRank.
While token unlocks frequently lead to price declines, there is a possibility that this factor may already be reflected in the current price, although uncertainties persist.
Comparing SUI with Solana
At present, SUI has recorded a 2.5% gain on the hourly timeframe compared to Solana’s minor -0.03% performance, surpassing it in the short term.
Over a daily span, SUI displayed a 7.77% growth, while Solana exhibited a 3.08% increase. Despite Solana’s market capitalization being 30 times more, the future will reveal if SUI can continue to narrow this gap.