SUI has been steadily making progress in its recovery, surging more than 150% from its low point in early August when it was priced at $0.5. Since the beginning of September, the L1 network has experienced a 60% increase and reclaimed $1.2, a resistance level seen in Q2/Q3, indicating the potential for further bullish momentum.
An analysis by crypto expert Raoul Pal from Real Vision suggests that SUI is poised for a significant uptrend on the price charts. Pal pointed out SUI’s recent breakthrough above a long-term trendline resistance and the SUI/SOL ratio, hinting at a possible explosive surge exceeding that of SOL.
Predicting SUI Price Movement: Will the Recovery Continue?
SUI faced challenges maintaining its value above $1 during the market downturns in Q2 and Q3. Nevertheless, it managed to surpass $1 and is now close to turning the $1.05 – $1.13 resistance zone (highlighted in cyan) into a support area. This could pave the way for a short-term bullish target of $1.4, offering a potential gain of 24%. Technical indicators on the chart are also signaling bullish momentum.
Despite the positive outlook, both the RSI and stochastic RSI indicate potential overbought conditions ahead of the Fed rate decision. A drop below $1 could invalidate the short-term bullish scenario, with a key support level sitting above $0.8 (highlighted in white) becoming critical.
Exploring SUI’s Network Growth and Potential Challenges
While the recovery trend appears promising, certain on-chain metrics paint a different picture. The uptick in daily active users (highlighted in yellow) coincides with the network growth during SUI’s climb above $1, along with a surge in DEX volume indicating increased DeFi activity. However, a recent decline in active addresses over the past three days might slow down the recovery trajectory.
Despite these factors, a significant portion of skilled traders on Binance have placed their bets on further price appreciation for SUI, with approximately 54% holding long positions. This collective sentiment suggests a positive outlook for SUI’s price movement.
It is essential to monitor broader macroeconomic updates and geopolitical events that could impact SUI and the overall market sentiment.