Over the course of the recent recovery period, SUI has demonstrated significant growth, surging by more than 150% since hitting lows around $0.5 in early August. As September unfolds, the L1 network has seen a 60% increase, reclaiming the $1.2 mark, a level that previously posed as resistance in Q2/Q3. This upward movement could potentially indicate the beginning of another bullish momentum.
Analysis from crypto expert Raoul Pal of Real Vision suggests that SUI is poised for a major surge in its market value. Pal points to SUI’s breakout above a long-standing trendline resistance as well as the SUI/SOL ratio as strong indicators of its potential for significant growth.
In summary, there are indications that SUI might outperform SOL in terms of price appreciation in the near future.
Is SUI Set for Further Recovery?
SUI faced challenges maintaining levels above $1 during the market downturns witnessed in the second and third quarters of the year. However, recent developments show that it has managed to surpass the $1 mark and is now on the cusp of converting the $1.05 – $1.13 resistance zone (highlighted in cyan) into a support area.
If this trend continues, the short-term target of $1.4 could potentially yield a 24% increase. Alongside the positive market structure, various technical indicators are displaying bullish signals.
Nevertheless, the RSI and stochastic RSI currently indicate possible overbought conditions, especially with the impending Fed rate decision. A drop below $1 would invalidate the optimistic short-term outlook outlined above. In such a scenario, keeping an eye on the demand zone above $0.8 (highlighted in white) will be crucial.
Networking Growth for SUI Shows Promise, Yet…
Despite the favorable trajectory in terms of price, certain on-chain metrics paint a different picture. The surge in recovery coincided with increased network growth, visible in the rise of daily active users (shown in yellow).
The number of addresses surpassed 1.25 million as SUI crossed above the $1 mark. This uptick was followed by a notable increase in DEX volume, indicating heightened DeFi activity within the network. However, the recent decline in active addresses over the past few days might potentially slow down the recovery process.
On the trading front, a notable portion of top traders on Binance have been placing their bets on SUI seeing further price hikes. Around 54% of these “smart money” players have taken long positions, signaling a positive outlook for SUI’s future performance.
Nevertheless, keeping abreast of macroeconomic updates and geopolitical events that could impact SUI and the broader risk markets remains critical.