Today, January 4, 2024, SUI, the layer 1 blockchain, has received significant attention from crypto investors and traders following its impressive upward momentum. While most assets including Bitcoin (BTC), Ethereum (ETH) and XRP have struggled to gain momentum over the past 24 hours, SUI has led the market with a 20% upside move.
SUI is at the top of the crypto market
With this notable price increase, SUI is trading around $5.27 and has seen significant participation from traders and investors, resulting in record jumps in trading volume. Data from CoinMarketCap shows that the altcoin’s trading volume has increased by 150%. This notable participation from traders and investors is also one of the main reasons behind the rally.
Long-term holders move assets
With this remarkable upside momentum, long-term holders, investors and retailers have been seen dumping SUI tokens, indicating potential profit booking, as revealed by on-chain analytics firm Mint glass. Spot inflow/outflow data shows that exchanges have witnessed an inflow of $15.60 million of SUI tokens.
In the cryptocurrency industry, the inflow of assets from long-term holders’ portfolios to exchanges signals a potential sell-off, which could create selling pressure and lead to a price decline. Despite all these releases, the SUI price remains strong above $5.
What’s driving the SUI rally?
However, another possible reason for SUI’s upward rally is the controlled release or unlocking of 82 million SUI tokens, equivalent to 0.82%, along with its partnership with ANT Digital Technologies for global adoption, recent recognition from the founder of Cardano Charles Hoskinsonand breaking a crucial resistance level.
SUI technical analysis and key levels
According to expert technical analysis, SUI recently broke out of a crucial resistance level at $4.90, which it has historically tried to break multiple times. In addition to the breakout, the altcoin has successfully closed a daily candle above $5, with strong interest from traders and long-term holders.
Based on the recent price action, a correction is possible as the price appears to be overextended. However, the SUI could rise 10% to reach the $5.75 mark in the future.
Will the SUI rally continue?
Current market sentiment, with price recovery, rising investor interest, recent collaborations, recognition by a major blockchain founder and the recent breakout, suggests that this rally could continue and the price could continue to rise in the future.
