SUI Surges by 25% as it Eyes $2 Amid Positive Market Developments

The SUI price rose by close to 25% within one week to trade at $1.03 SUI/USDT at Gate.io on 13 September. This positive price move is mainly a result of the broader market wide improvement that started on 3 September. So far, within the last two weeks SUI has gained by around 30%. The following graph shows its price performance within the last seven days.

SUI Weekly Price Chart – CoinGecko

As seen on the graph, the SUI price started rising on 7 September and has continued within the last seven days. For instance, Data on CoinGecko shows that the value of SUI rose from $0.9274 to reach an intraday high of $1.07 which was an impressive 15% intraday gain. With such a price rise SUI was one of the best performers among the top 100 cryptocurrencies.

Reasons for SUI’s Rally

One of the factors that might have contributed to the SUI rally is the launch of Grayscale Sui Trust.  Grayscale, one of the leading asset management firms, announced the launch of this new investment vehicle on 12 September. As a result, eligible investors can now invest in Grayscale Sui Trust and gain exposure to the SUI crypto. What this means is that the investors will benefit from SUI price changes without buying and holding it. This should attract much funds to flow into SUI. This development has also helped to create a positive investor sentiment for the digital currency.

Grayscale Sui Trust – x.com/Grayscale

Posting on its blog Grayscale said, “Grayscale SUI Trust is one of the first securities solely invested in and deriving value from the price of SUI (“SUI”) that enables investors to gain exposure to SUI in the form of a security while avoiding the challenges of buying, storing, and safekeeping SUI, directly.”

It continued, “Shares (based on SUI per Share as indicated below) are designed to track the SUI market price, less fees and expenses.” This development has generated much attention for the cryptocurrency which is likely to lead to higher demand than before.

SUI Network Growth

The SUI network has recorded much growth within the past one year. It now has over $711 million in total value locked (TVL). According to DeFiLlama its TVL has grown by 107.5% since 5 August as the next graph shows.

SUI Total Value Locked Growth- DeFiLlama

As observed on the graph, SUI TVL has been gradually rising since November 2023. This growth shows the increase in investor confidence in the cryptocurrency and the SUI ecosystem. It also indicates a rise in investor interaction with the network

The other factor that has increased SUI bullishness was Binance’s launch of “SUIUSD COIN-M Perpetual Contract With up to 20x Leverage.” This development has generated a positive investor sentiment which will likely increase the demand for the coin.

SUI Market Performance

Following the launch of Binance’s SUIUSD COIN-M Perpetual Contract and Grayscale Sui Trust SUI has turned bullish. The possibility of a Fed rate cut which has resulted in a market wide bullish outlook has also contributed to SUI’s positive price performance. Since these developments may lead to a rise in retail and institutional adoption of SUI the market anticipates its price to surge towards $2.

One positive thing is that SUI has managed to rise above the $1 key resistance level. For a long period, it had been very difficult for the coin to pass that hurdle. As a fact, SUI tested the $1 price level twice within the past one month before breaking out. Also, SUI is currently trending above the 50-day and 200-day exponential moving averages (EMAs). This is a strong bullish signal that attracts investors to invest more funds as they anticipate a further appreciation. Whereas SUI had a death cross in May this time around it may have a golden cross.

Some technical indicators are also showing that the SUI bullishness may continue which may push its price towards $2. For instance, the SUI relative strength index (RSI) has a reading of 65 and is still rising. This is a very strong bullish indication. In the derivative market the traders have opened more longs than shorts. This shows that they have much confidence that the SUI price may continue to rise. The following SUI Liquidation Map shows the key price levels which traders should keep checking on.

SUI Exchange Liquidation Map: Coinglass

The main price levels to keep an eye on are $0.982, $0.96, $0.90, and $0.883. The reason is that the traders opened trades with high leverages at these points. However, if the SUI price drops below these levels it may end up fluctuating between $0.98 and $0.883.

If its price continues to rise its next target could be $1.025, a key resistance level. If it surpasses this point it may move towards 2.58. Changelly predicts the SUI price to reach $2.05 by 1 October. If that happens the coin price could have risen by 99.4%. However, the same platform predicts that SUI will be trading around $1.83 by the end of 2024. This means that the cryptocurrency will experience a price fall later during the year.

The post SUI Surges by 25% as it Eyes $2 Amid Positive Market Developments appeared first on Blockonomi.