The price of Sui (SUI), the native token of the Sui blockchain network, has seen a significant surge over the past few days. Specifically, SUI has risen from $0.79 to $1.20 within the last 3 days, which marks a 50% increase. Just within the last 24 hours, the token spiked by 15% to reach its current level.
This latest price jump is part of a larger upside move for SUI that started back in October 2023. What is driving this sustained rally over the past few months?
Growing Adoption and Usage
According to crypto analyst Artemis, there has been a noticeable increase in volumes on decentralized exchanges (DEXs) built on the Sui Network. Over the past 3 months, DEX activity on the blockchain has accelerated.
Alongside this rise in DEX volumes, the total value locked (TVL) into Sui-based decentralized applications has reached an all-time high of $222.92 million since the network launched in May 2023.
This data indicates that adoption and usage of apps on Sui is rapidly increasing. As more developers build projects on Sui and more users interact with them, demand for the SUI token increases. This rising utility and activity is a likely catalyst behind its ongoing price rally.
How Much Higher Can It Go?
Given the rapid surge recently, how much more upside potential does SUI have in the short term? From Our price analysis, we saw that the RSI on the daily timeframe is already 72, which means that price can start to retrace at any time from now.
The Relative Strength Index (RSI) technical indicator reflects that SUI is now in overbought territory after its parabolic run over the past few months. An RSI above 70 signals a heightened probability of a price pullback or consolidation.
If a retracement does commence from current levels, key Fibonacci support levels to watch are $0.89 and $0.78 – which correlate with the 50% and 61.8% Fib retracement levels respectively when measured from the start of the uptrend in October 2023. These zones may act as downside buffers if the rally loses momentum in the short term.
In summary, while strong adoption trends bode well for Sui in the long run, traders should be aware the token could see a tactical pullback after such a strong move in recent months. Key support levels around $0.89 and $0.78 may come into play if a correction kicks in
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