cryptonewsz.com
On April 13, one of the leading cryptocurrencies, $SUI, gained an upward momentum with a spike of around 6% following the small recovery phase in the overall crypto market.
However, this surge in the $SUI token is still low compared to the drop in the last 30 days, where it lost around 45.85% in value. At the time of writing, the cryptocurrency is trading at around $0.96 with a staggering market capitalization of $3.67 billion, according to CoinMarketCap. However, the daily trading volume is still low and currently revolves around $280 million.
Sui Price Gains Momentum Ahead of Major Futures Launch in May
While the investors are pouring their money into major cryptocurrencies, $SUI’s price movement is showing an unusual pattern. Recently, the cryptocurrency had witnessed a small bounce off the $0.82 level a few days ago, but the price momentum is starting to strengthen again.
In the last two major red candles, the cryptocurrency has soared back above $0.95 and has been rejected quickly.
At present, the support level around $0.90 is working as a psychological floor. If the price breaks below this on the daily close, the token will likely head back down to test the $0.86 support zone. The trading volume is also reducing quickly, which generally means that it might be preparing for another major price movement.
If the buy wall at $0.90 disappears, the price action could become ugly. But if Sui can consolidate here and flip $0.93 into support, the market might actually see a run back toward the $1 level.
However, as of now, it is difficult to predict any major price movement.
According to technical indicators, the $SUI is expected to follow a balanced pattern that supports the recent price movement without any extreme conditions. The 14-day relative strength index is currently revolving around 72. It clearly suggests that the cryptocurrency is entering overbought territory. Also, there is some room for additional upside before reaching an extreme overbought level.
Apart from this, the token is trading above its short-term moving averages. However, it is also facing overhead resistance from longer-term averages around $0.95. This price pattern in the cryptocurrency is suggesting that if the cryptocurrency manages to hold above this level, the $SUI might see another spike. On the other hand, if the cryptocurrency falls below $0.90, it would again test support.
The current price movement in the cryptocurrency was also witnessed after the major announcement. The CME Group has recently announced that it will launch regulated $SUI futures contracts on May 5. This will open the door for institutional investors who want compliant, friendly crypto products.
Launch of USDsui Boosts On-Chain Activity
Apart from this, the Sui Foundation invested in Splyce Finance to enhance cross-chain bridging with zero-knowledge proof technology. This will improve security and speed of transactions.
The network has also witnessed growth in activities after the launch of USDsui, which is a native stablecoin. This stablecoin is reinventing yield back into the network to fund buybacks and liquidity. This creates a self-sustaining economic loop.
Major protocols like Turbos, Cetus, and Suilend have already raised support for USDsui. Amid the boom in the overall stablecoin market, this new launch on Sui is expected to attract new users.
At present, the cumulative market capitalization of stablecoin is currently revolving around $320.36 billion.
(Source: DeFiLIama)
According to DeFiLIama, the total value locked in Sui DeFi is revolving around $587.39 million, thanks to a staggering stablecoin market capitalization of around $517.
There are major developments and partnerships also taking place on the network. Navi Protocol has introduced new leverage features for lending, while a collaboration with ONE Championship brings blockchain utility into sports entertainment and fan engagement.