SUI, the native token of the Sui layer 1 smart contract platform, has recently gained significant attention in the DeFi sector with a staggering 300% price increase over the past three months.
In October 2023, SUI’s price and traders’ interest took a hit due to allegations of supply manipulation from South Korean regulators. However, recent technical and on-chain data indicate that SUI’s price reversal is actually driven by improving fundamentals.
The protocol’s total value locked (TVL) has experienced a remarkable surge of over 2,000%. This surge can be attributed to the overall bullish momentum in the crypto market. SUI’s trading volume has also seen substantial growth, reaching over $950 million on Jan. 13, a 2,200% increase over three months.
According to DefiLlama, SUI’s TVL has steadily increased by more than 828% from $54.39 million in October 2023 to the current value of $319.23 million. Greg Siourounis, Managing Director of the Sui Foundation, acknowledged this growth, stating that reaching $300 million in TVL is a significant milestone and represents a more than 2,000% increase since August 2023.
Cetus, a decentralized exchange (DEX), leads the protocols behind SUI’s rising TVL with $62 million locked. Navi Protocol follows with a TVL of $60 million, showing a 485% increase in the last 90 days. Other protocols contributing to SUI’s TVL include Scallop Lend ($54 million), DeepBook ($33 million), and FlowX Finance ($31 million).
Furthermore, SUI’s relative liquidity ratio (RLR) indicates a growing interest from traders. The RLR, which measures the 24-hour trading volume to market cap ratio, suggests that a higher ratio reflects greater interest and liquidity in the token. SUI’s triple-digit price rally has undoubtedly attracted traders, as evidenced by the RLR.
In terms of price analysis, SUI has recently reached a swing high at $1.4486 after finding support at the $0.36 price zone. The major moving averages are still pointing upward, and the relative strength index (RSI) is at 68, indicating favorable market conditions for bullish traders. Key levels to watch on the upside include $1.40, $1.44, $1.60, and $1.70.
However, the RSI currently suggests that SUI is significantly overbought, and a correction may be on the horizon as sellers take profits. The first line of defense could be the 23.6% retracement level at $1.92, with additional support areas at $1.0 and the 61.8% retracement level at $0.80.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.