Key Insights
- SUI price is testing key resistance after bouncing off support.
- Fundamentals show strong growth, with +7.05% user increase and $1.53B TVL.
- A breakout above resistance could target $4.50, signaling a major rally.
SUI price is currently showing signs of a potential bullish breakout. Market participants watch closely for confirmation as price consolidates near key resistance and network activity increases. Also, technical and on-chain data imply momentum shifting towards buyers.
SUI Price Tests Resistance After Recovering From Recent Lows
The price of SUI has gradually recovered after a steady decline that began in January 2025. Early in March, the price dropped from as high as around $4.50 to close to $1.80. However, SUI has rebounded since then and is currently trading around $2.11.
Currently, SUI is testing the upper of a falling wedge pattern, which is considered a bullish reversal pattern. Analyst CryptoFaibik has spotted this setup and even noted a breakout potential. If the breakout happens and holds, a target price between $4.20 and $4.50 might be achieved.
The recent attempt to break above the wedge’s resistance shows potential for a breakout. If the price stays above $2.20 with strong volume, it will confirm a bullish trend. A breach of resistance could propel the price to $4.50, where the next resistance stands at $5.10.
User Growth and Network Activity Show Strength
Current technical information receives backing from on-chain analytical indicators. New SUI wallets have rapidly increased their connections to the network during the past three months. Daily active addresses, mainly new wallets, rose from under 200,000 in early February to over 2 million in April.
Strong continuous growth also suggests a growing user population and increased network activity. Active address distribution on longer time scales determines the long-term success of the project activities. Although new network user additions have been made, the market is still in accumulation mode because network price stability has not been shifted.
Additionally, the platform user base increased by 7.05% last week. Users have steadily added capital and executed more operations on-chain, and the total SUI value locked is $1.53 billion. The steady rise of stablecoin inflows amounts to a 15% increase as users establish their assets in the system.
Futures Sentiment and Funding Rates Reflect Market Shift
The OI-Weighted Funding Rate of SUI has also moved in a more bullish direction for the SUI market. The funding rate, which measures the price of holding long and short positions, has seen back-and-forth positive and negative values. Positive funding has indicated a bullish bias in futures markets, while negative funding signals bearish sentiment.
The market showed increased optimism as positive funding rates matched the upward trend of prices during late January and early February. Funding rates, however, turned negative in the range from February to March, suggesting it was a bearish market sentiment. Now that the price of SUI has stabilized and is recovering, the funding rate has returned to neutral and slightly positive. Traders are returning to a bullish stance as the bearish pressure eases.
Market Sentiment Neutral as Breakout Setup Builds
While network and technical indicators lean toward a bullish scenario, market sentiment remains cautious. The Fear & Greed Index also reads 39, a moderate market fear. Sentiment data displays that SUI has 14 green days within the last 30, and price volatility is 7.77 %.
Meanwhile, the current price prediction for SUI estimates a possible increase of 227.80% to $7.21 by May 20, 2025. However, price confirmation above $2.20 and a break through the $2.50–$3.00 range will be needed before any strong bullish trend can be confirmed.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
The post SUI Price Shows Bullish Potential, Targets $4.50 Breakout appeared first on The Market Periodical.
