finbold.com
Sui (SUI) is on a remarkable upward trajectory, exhibiting strong bullish momentum. On December 12, it surged to a new all-time high of $4.91, fueled by a 30% gain over 24 hours, making it one of the top-performing digital assets in the market.
Despite a 4.5% pullback in the last 24 hours, SUI’s bullish trend remains intact, drawing comparisons to some of the most explosive rallies in cryptocurrency history, including Solana’s (SOL) meteoric rise in 2021.
Notably, an analysis by TradingShot, a prominent technical analysis firm, highlights a striking resemblance between Sui’s current price action and Solana’s breakout pattern in 2020-2021.
The analysis points out that Sui’s ongoing “Channel Up” formation mirrors the early phases of Solana’s parabolic rise.
Technical analysis – Channel up formation driving gains
On the one-day chart, SUI has been trading within a well-defined Channel Up pattern since its August 5 low.
Each bullish leg within this channel has seen rallies of 138.89%, and the most recent upward move was triggered by a bullish crossover on the one-day moving average convergence divergence (MACD).
The token is currently supported by its 50-day moving average (1D MA50), a critical level that has consistently acted as a launchpad for its rallies.
With these technical indicators aligned, the next target for SUI is $7, a level coinciding with the 0.786 Fibonacci retracement. This level has remained unbroken since August, and a successful breakout could pave the way for further gains.
Notably, the 200-day moving average (1D MA200) remains well below the current price action, highlighting the strength of Sui’s bullish trend.
AI models further support this momentum, projecting that SUI could surpass $6 in the near term, driven by robust demand and growing network activity, as reported by Finbold.
SUI’s ecosystem growth: Fundamental drivers of momentum
Sui’s ecosystem growth continues to drive its bullish momentum, with its fundamentals strongly complementing its technical performance.
On December 12, the total value locked (TVL) on the network surged to a new high of $1.84 billion, according to data from DefiLlama.
Meanwhile, its decentralized exchange (DEX) activity hit a 24-hour record of $466 million, pushing cumulative DEX volume beyond $35 billion.
Notably, Sui’s TVL has displayed impressive consistency, remaining above $1 billion since November 6 and currently sitting at $1.66 billion.
This sustained capital inflow highlights the network’s robust activity and growing user engagement, underscoring its position as a rising force in the blockchain space.
Partnerships fueling growth
Recent partnerships have played a crucial role in Sui’s growth trajectory. In November, the network announced a collaboration with $1.7 trillion asset manager Franklin Templeton to explore innovative use cases.
It also partnered with Babylon Labs, Lombard, and Cubist to integrate Bitcoin liquidity, unlocking programmable Bitcoin capabilities within its ecosystem.
Adding to its appeal, Sui has expanded its functionality through key wallet integrations. The announcement of Phantom Wallet’s integration with the Sui network has enhanced its usability, and the recent announcement of Backpack integration has further fueled its rising appeal.
While these developments have undoubtedly boosted Sui’s ecosystem, the recent gains suggest that broader market dynamics and increased utility are also driving its growth, pointing to a combination of ecosystem growth and external factors contributing to its bullish trajectory.
Sui price analysis
At press time, SUI is trading at $4.69, reflecting a 12% gain over the past week and an impressive 46% increase over the past month.
A combination of strong technical indicators, fundamental drivers, and broader market dynamics positions Sui to potentially replicate the kind of rally seen with Solana in 2021.
With the $7 target within reach, Sui presents a compelling opportunity for traders and investors to capitalize on its upward momentum.
Featured image from Shutterstock.