SUI, the native cryptocurrency of the Sui network, has faced a sharp decline in recent days, pulling back by 2.66% in the past 24 hours and the price dropping below the critical $2 psychological mark. With its current price hovering around $1.92 and a market cap of $5.30 billion, many investors are left wondering whether this pullback signals an impending deep correction or if the network’s strong activity will fuel a breakout back above $2—and potentially beyond $3.
SUI Price Analysis: A Rounding Bottom Reversal in Play
On the daily chart, SUI’s price action presents a promising pattern in the form of a rounding bottom reversal. This technical setup often signals a potential upward trend, with the price approaching the neckline at $2.07. However, recent price action has shown signs of hesitation. A higher price rejection near this critical level has led to the formation of an evening star pattern—a bearish signal marked by a 1.51% drop in price yesterday.
Despite this, the overall trend remains somewhat positive. The 50-day, 100-day, and 200-day exponential moving averages (EMAs) continue to trend upward, offering dynamic support for SUI’s price. This indicates that bullish momentum may still be in play. Meanwhile, the MACD (Moving Average Convergence Divergence) indicator shows indecision, with both the MACD and signal lines moving sideways, leaving the market in a state of uncertainty.
Network Activity: Strong Fundamentals Amid Price Volatility
While SUI’s price has struggled in recent days, the Sui network’s underlying health remains robust. According to SUIscan, the platform has recorded an impressive uptick in activity. Over the past 24 hours, the total number of transaction blocks increased by 28.55 million, pushing the overall block count to 2.21 billion. This growth reflects a healthy and active blockchain network.
Moreover, total transactions on the network rose by a staggering 61.185 million in the last day, bringing the total transaction count to 5.362 billion. Despite this surge, the number of transactions per second has decreased slightly by 209, with the daily average standing at 341 transactions per second. In the world of NFTs, the Sui ecosystem continues to expand, with an additional 18,875 NFTs minted in the past 24 hours, pushing the total to an impressive 43.63 billion NFTs.
With 1.05 billion total volume logged on the SUI blockchain and a 14% rise in new accounts over the past seven days, the network’s fundamentals remain strong, suggesting a potential recovery in price may be on the horizon.
Key Support Levels: Will SUI Test $1.75 Before Rebounding?
As the intraday candle reveals a 3.50% drop, SUI appears to be testing critical support levels. Based on Fibonacci retracement levels, the next significant support lies at the 78.60% Fibonacci level, near $1.74. Should this level fail to hold, the $1.50 psychological mark would become the next line of defense for SUI, potentially signaling deeper correction territory.
However, on the bullish side, a neckline breakout at $2.07 could trigger a substantial rally. In this scenario, a continuation of the upward momentum could see SUI pushing toward a 50% price increase, targeting the 1.618 Fibonacci extension at the $3.00 mark.
Conclusion: Is a Bullish Breakout Imminent for SUI?
While SUI is currently navigating turbulent waters, the strong network activity and technical indicators suggest that a potential breakout may be in the cards. A successful bounce from the $1.74 support or a bullish breakout above $2.07 could set the stage for SUI to challenge the $3 mark in the near future.
Investors should keep a close eye on key support and resistance levels in the coming days. If SUI can maintain its network momentum and break through resistance levels, it may not be long before the token reclaims $2—and possibly even surpasses $3 by the end of 2024. Stay tuned for Coinpedia’s comprehensive SUI price predictions to see what the future holds for this promising cryptocurrency.
