Ranked among the leading decliners this week, SUI [SUI] has fallen by more than 13%, dropping back to $1.70 with a daily decrease approaching 10%. This pullback comes after a robust rally in September that drove SUI above $2.30.
With weak investors exiting, some traders might see the current price as an appealing entry point. Yet, with increasing volatility across the market, can SUI defy the odds and initiate a recovery?
History Appears to be Recurring
After a prolonged downturn, SUI witnessed a notable rally early in August, supported by Grayscale, providing indirect exposure to the asset for traders.
This heightened visibility shed light on SUI’s rapid transaction capabilities and intelligent contract features, enhancing investors’ understanding of its real-world application.
Consequently, the token experienced a remarkable upswing over two consecutive months, achieving an impressive 360% leap to a record high of $2.30, despite facing two bearish trends during this period.
A similar trend seems to be emerging currently. The developers announced the integration of MemeFi, the largest game on Telegram, into the SUI network, showcasing its impressive capacity once more.
While this presents a positive indicator for sustaining momentum, the impact on the token’s daily transactions – its primary Unique Selling Proposition (USP) – has been minimal.
Although daily transactions dropped from 4.8 million to 4.6 million, alongside other significant metrics, there has been a notable surge in new wallets entering the ecosystem, rising from 90K to 130K. This surge indicates renewed interest in the market.
This development holds importance for two primary reasons: new investors perceive the current price as a potential market bottom, and it reflects growing confidence in SUI’s prospective growth – a bullish signal.
SUI Might be Planning THIS for a Recovery
In contrast to the previous cycle, where the Relative Strength Index (RSI) surpassed the 70 threshold – indicating an overheated market – SUI currently maintains a more comfortable level, with subdued buying interest.
While this might sound pessimistic, the current position could encourage sustained buying interest without significant looming selling pressure.
Combined with the surge in new wallets, there is a solid possibility for the token to rebound by leveraging the ongoing market volatility to draw capital from high-market capitalization altcoins towards more economical alternatives.
Consequently, it might not be overly optimistic to anticipate SUI defying the odds once more, potentially revisiting an upward swing towards $2. If the overall market sentiment remains negative, SUI might even record a new record peak.
However, continual monitoring of two key metrics – fresh interest and the performance of other altcoins – will be crucial.