- SUI price is poised for short-term bearish pressure, with the next target at $1.80.
- Traders expect that a further upward trend will be observed if SUI will be trading with a close above $2.34 on the daily chart.
- ETF registration and increased participation of aggregators are pointing to long-standing growth for SUI as a stable ecosystem for DeFi and crypto assets.
Sui (SUI) is currently testing a critical level after it broke the 200-period moving average on the 4-hour chart. SUI is currently priced at $2.15 after experiencing a 2.94% slump in the last 24 hours. In the short term, there is a possibility that the token could return to the $1.80 area, which is close to a horizontal support level. If this level fails, other significant lower targets include $1.64 and $1.51.
UNKNOWN TRADER, an analyst on X, posted a chart where SUI was trading below an important trend line and might retest $1.80 in the correction before bouncing back. UNKNOWN TRADER stated that the 4H MA200 breakdown to become vulnerable. It further provided $1.80 as the final rejection level for the long setups, with failure marked by a daily close below it.
On the daily time frame, the RSI is at 43.88 with the MACD line slightly below the zero level indicating weak bullish pressure. Along with an almost 19% decline in trading volume over the last 24 hours, the technical setup suggests staying short-term bearish until a bounce back occurs.
Mid-Term Price Projection Reaches $40 Amid Growing Network Demand
While SUI was subject to short-selling activity in the near term, analysts have optimistic expectations for its long-term prospects. CryptoELlTES also gave a target of $40 in the mid-term from the token’s technical aspect and prime buying zone. The technical chart indicates a cup and handle pattern that might be an excellent buy signal to provoke a parabolic trend.
Furthermore, the expansion of SUI’s ecosystem contributes to the increase in price predictions. The actual Network has obtained an aggregator volume of $ 30 billion at a monthly activity increase of 12.79%. This indicates increased investors’ interest in the SUI blockchain and increased user activity in the ecosystem.
Increased market participation usually contributes to greater levels of liquidity meaning; larger price fluctuations in the following months. This sustainability may ensure that the network brings the right growth to SUI which might lead to a boost in its price.
SUI ETF Filing Signals Institutional Adoption Potential
Canary Capital recently proposed a spot SUI ETF to the Cboe BZX Exchange, which would help spearhead institutional adoption of the token. If granted, the ETF approvals will make it the first market index linked to SUI funds, thus expanding its acceptance in the traditional financial markets.
The proposal for ETF recognition involves a staking mechanism that may allow investors to earn some returns. Also, it contains protective measures against market manipulation and regulations similar to those in the case of Bitcoin and Ethereum ETFs.
SUI’s architecture, designed by ex-engineers of Facebook, has supported its increasing adoption in the Decentralized Finance space. The consensus mechanism that the blockchain uses includes two layers, which help increase transaction speed and network scalability.
