- SUI price shows strong momentum, potential for higher gains.
- Open interest and funding rates are bullish for SUI.
Sui Network [SUI], a leading non-EVM chain, is gaining significant traction in the cryptocurrency market.
Known for its impressive transaction speed, even surpassing Solana, Sui Network is making waves with its growing Total Value Locked (TVL), now exceeding $600 million.
This increase in TVL is positively impacting SUI’s price, making it a notable contender in the market. Recently, SUI has been trading above an hourly downward trend channel, indicating a potential shift in momentum.
Source: X
The price action of the SUI/USDT pair has shown bullish signs, especially from the falling wedge resistance zone on the 4-hour timeframe.
If this strong price action continues, it could signal a sustained bullish trend in the long run. The price has already broken above the upper resistance of the hourly downtrend channel, but confirmation is still pending.
However, the volume oscillator and large 4-hour candles suggest that momentum is in favor of further gains.
For traders, a long opportunity around the breakout level of $0.80 could offer a 25% return on investment if price reaches the $1 level.
Source: TradingView
Analyzing the hourly timeframe reveals that the stochastic RSI is in the overbought zone, indicating strong buyer confidence. This presents an opportunity to increase investments in this correction phase.
However, if the price of SUI/USDT falls below the $0.74 level, traders should exercise caution and reassess their next move, with $0.65 being a crucial support level to watch.
Open interest and funding rates
Examining the open interest of SUI/USDT reveals five critical zones where traders have shown significant interest or disinterest.
The $0.825-$0.832 and $0.891-$0.898 zones have open interest readings of $14.59 million and -$12.409 million, respectively, indicating low trader interest.
Source: Hyblock Capital
On the other hand, the zones between $0.84-$0.847, $0.913-$0.920, $0.971-$0.978, and $1.066-$1.073 have attracted positive interest, with the $1 level being the most significant.
Additionally, the funding rates have turned positive, according to data from Coinglass.
This metric indicates that long traders in SUI are paying those holding short positions, suggesting that the price of SUI in perpetual futures contracts is stable and aligned with its actual market value.
Source: Coinglass
Token unlocks
Monitoring vested tokens and future unlock events is crucial for making informed trading decisions. SUI is among several major projects set to unlock millions of dollars worth of tokens, which could lead to a selloff.
Other tokens with upcoming unlock events include IMX, NEON, WLD, MODE, ZEUS, and GAL, according to CryptoRank.
Source: CoinRank
While these unlocks often result in price drops, there is a possibility that this has already been factored into the current price, though uncertainty remains.
Realistic or not, here’s SUI market cap in BTC’s terms
How SUI compares to Solana
At press time, SUI had gained 2.5% on the hourly timeframe compared to Solana’s -0.03% outperforming it in the short term.
Over the daily timeframe, SUI showed a 7.77% increase, while Solana saw only 3.08% growth. Although Solana’s market cap is 30 times, time will tell if SUI can continue to close this gap.
Source: Coinpare
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