The Potential for SUI to Recreate its Remarkable 360% Growth Post a Recent 13% Decline
SUI, which stood out as one of the top losers in the current week, has witnessed a downfall of more than 13%, dropping back to $1.70 along with a daily dip of nearly 10%. This retracement comes on the heels of a robust rally in September that pushed SUI beyond $2.30.
With some investors perceiving the present price point as an appealing entry opportunity following the exit of weaker players, the question now arises amidst escalating market volatility – can SUI defy the odds and make a comeback?
Parallels in History
Post a six-month downward trend, SUI saw a notable surge in early August, supported significantly by Grayscale. This backing offered traders an indirect exposure to the asset, enhancing SUI’s visibility and showcasing its rapid transaction speeds and smart contract functionalities.
This newfound recognition led to an impressive upswing over the following two months, with a whopping 360% increase reaching an all-time high of $2.30, despite facing bearish cycles in between.
A similar narrative is unfolding presently. The integration of MemeFi, the largest Telegram game, into the Sui network was announced on a social platform, X (formerly Twitter), underscoring its efficient throughput.
While this serves as a positive signal to sustain momentum, the effect on the token’s daily transactions – a key selling point – has been minimal. There has been a slight decrease in daily transactions from 4.8 million to 4.6 million, alongside other metrics.
Yet, the notable climb in new wallets joining the ecosystem, jumping from 90K to 130K, points towards fresh interest in the market.
This development carries weight for two main reasons: the newfound buyers eye the current price as a market low, signifying growing optimism about SUI’s future potential – a bullish indicator.
Strategizing for a Potential Rebound
In contrast to the prior cycle where the RSI peaked above the 70-mark, indicating an overheated market, SUI presently sits at a more comfortable level with subdued buying interest.
While this might seem bearish, the current position could attract continual buying interest as there is no significant impending selling pressure. With the surge in new wallets, SUI stands a good chance for a rebound, potentially drawing capital away from high-cap altcoins toward more budget-friendly alternatives amid the prevailing market volatility.
Hence, anticipating SUI to defy the odds once more and potentially witness an uptrend back to $2 might not be overly optimistic. If the general market sentiment continues to be bearish, SUI could even attain a new all-time high. However, diligent monitoring of two crucial metrics – new interest and the performance of other altcoins – will be imperative.