After reaching a peak of $4.3 a few weeks ago, Sui [SUI] has faced significant downward pressure. Currently, SUI is trading at $3.35, showing a 0.42% decline on daily charts.
On the weekly and monthly charts, the altcoin has also experienced drops of 1.14% and 23.71% respectively.
Despite the challenges faced by SUI in terms of price, its underlying fundamentals have been showing growth.
Upward Trend in SUI’s Daily Active Addresses Reaches a 3-Month High
Over the last month, there has been a notable surge in daily active addresses for SUI, reaching recent highs. The number of daily active addresses has hit 1.4 million for the first time since November 2024.
This increase in active users indicates a growing adoption and demand for SUI.
This rising adoption is further confirmed by the increasing number of new and returning users.
Artemis data reveals that the number of daily new wallets for SUI spiked to 1.1 million in October 2024, rising to 1.4 million recently.
Moreover, the count of returning wallets has remained steady, reaching 346.6k. This indicates a robust organic demand for SUI.
Typically, a surge in active users is considered a bullish sign as it indicates higher network activity and user engagement.
Historically, an increase in active addresses usually precedes price appreciation due to rising demand. Therefore, could the growing user base drive SUI to reclaim higher price levels?
Will the Escalating Demand Lead to Price Surge?
According to CryptoCrypto’s analysis, there has been a resurgence of buyers entering the SUI market following a period of inactivity.
For instance, the buy volume for SUI has exceeded the sell volume by 2.2 million, with buy volume hitting 8.64 million compared to 6.44 million in sell volume.
This substantial buy volume suggests that buyers are actively trying to regain control of the market from sellers, showcasing strong bullish sentiments.
Another indicator of this bullish trend is the increase in exchange outflow. The Spot netflow has dropped to -1.84 million, indicating more assets are flowing out of exchanges than coming in.
Increased outflow suggests that investors are accumulating SUI by moving it away from exchanges to cold wallets or private storage.
Furthermore, the Funding Rate for SUI has consistently remained positive over the last three days. This indicates that long positions are bullish and anticipate price recovery, hence they are willing to pay a premium fee to maintain their positions.
With high demand for long positions, there is a possibility of price increase if spot demand also rises.
In summary, the growing number of active addresses signals optimism for SUI, which has faced challenges in maintaining an upward trajectory.
If the increasing demand remains steady, there could be a potential price recovery leading to a breach of $3.6 and a breakout from the descending trendline.
A successful breakout could empower the altcoin to reclaim $4.0. Nonetheless, in the presence of existing sellers, a failure on the part of buyers to retain control might result in a retracement to $3.24 before another upward movement.