SUI price has managed to hold support at $3 during its recent downtrend, forming a bullish pattern that points to a potential recovery over $5.
Summary
- SUI price has fallen nearly 20% from its August high.
- New partnerships and ecosystem developments are positioning SUI for a bullish rally.
According to data from crypto.news, the Sui (SUI) token has dropped 5% in the last 24 hours. Trading at $3.34 at the time of writing, SUI has remained under pressure over the past few weeks, down approximately 19.7% from its August peak of $4.16.
The token has been in a downtrend, as it faced pressure from large token unlocks on Aug. 1 and Sep. 1, which released approximately 44 million tokens each, worth around $159 million and $143 million, respectively.
The added supply appears to have lowered investor appetite, with open interest down 30% since late July and funding rates sliding from 0.0615% in July to 0.0099%, according to Coinglass data.
While the SUI price continues to be under pressure from such large token unlocks, a few recent developments surrounding its ecosystem could provide it with the headwinds needed for a potential recovery over the coming weeks.
First, SUI Group Holdings, a publicly traded holding company that specializes in acquiring and managing SUI tokens as its core treasury asset, has recently acquired another 20 million SUI tokens. This pushes its total holdings to 101.8 million SUI, valued at over $344 million at the current market rates.
As the company continues to accumulate SUI, it reduces the circulating supply, creating scarcity that could support the token price gains.
Another factor that could fuel SUi’s gains is its persistent growth in the DeFi industry lately. Per data from DeFiLlama, the total value locked in DeFi protocols on the SUI blockchain has climbed to $3.5 billion as of press time, up from $3 billion just two months ago.
Further, the SUI team has recently partnered with blockchain analytics and compliance platform TRM Labs to bring industry-leading risk and compliance tools to the network. This could enhance security for builders, institutions, and users, potentially driving renewed interest from investors.
On the 1-week chart, SUI has been trading within an ascending triangle pattern since the beginning of the year. The structure is defined by a horizontal resistance line and a rising support trendline, indicating building price pressure.
As of press time, SUI is trading near the lower trendline at $3.10, which serves as a crucial support level. A rebound from this zone could act as a springboard for a move toward $4.30, aligning with the upper boundary of the pattern.
A decisive breakout above that level would open the way for a rally to $6.89, the projected target based on the height of the pattern, representing nearly 106% upside from current levels.
Conversely, if bearish momentum persists, a breakdown below the lower trendline could trigger a decline to $2.31, the next significant support level.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
