Sui (SUI), a promising altcoin, is showing signs of growth with a significant surge in daily active addresses, hitting a three-month high of 1.4 million. This surge in activity has fueled optimism about SUI’s potential for price recovery, despite its recent struggles in the market. After reaching a local high of $4.30 three weeks ago, SUI has experienced downward pressure, trading at $3.35 at the time of writing, with a 23.71% drop over the last 30 days. However, the increasing adoption and growing demand reflected in rising active addresses could signal a potential turning point for the altcoin.

Surge in Active Addresses Reflects Growing Adoption

Over the past month, SUI has seen a notable surge in daily active addresses, a key indicator of growing user engagement. At 1.4 million active addresses, this marks the highest level since November 2024. This surge reflects a rise in demand for the network, with more users interacting with the platform. Additionally, the number of new and returning wallets has been growing steadily, signaling organic demand.

New wallet registrations reached 1.1 million daily users, hitting levels not seen since October 2024, further strengthening the argument for increasing interest in SUI. Moreover, the number of returning users remains strong, sitting at 346.6K, which suggests sustained engagement and interest in the network. Historically, such surges in active users have often preceded price appreciation, as higher network activity typically reflects growing demand for the token. Could this increase in engagement help SUI break through key resistance levels?

A Bullish Signal Amid Declining Prices

Despite the growing adoption, SUI has been struggling in terms of price action. As of the latest market data, SUI has experienced a 0.42% decline on the daily charts and continues to drop on the weekly and monthly charts. However, the fundamentals remain promising, and recent data shows that buyers are slowly returning to the market after a period of dormancy.

The buy volume for SUI has recently outpaced the sell volume, with buy volume at 8.64 million compared to 6.44 million in sell volume. This indicates that bullish sentiment is growing, with more buyers looking to take control of the market. Furthermore, SUI’s exchange outflow has also been rising, with a negative spot netflow of -1.84 million. This suggests that investors are moving their SUI tokens off exchanges and into private storage, possibly in anticipation of future price increases.

Optimistic Sentiment: Will the Price Recover?

Alongside these indicators, SUI’s Funding Rate has remained positive for three consecutive days, a sign that long positions are gaining traction. This suggests that traders are optimistic about SUI’s future and are willing to pay a premium to hold onto their positions. If the rising active addresses and bullish sentiment continue to hold, SUI could experience a price recovery and potentially reclaim the $3.6 level, breaking out of its current descending trendline.

A breakout above $3.6 could pave the way for SUI to target the key resistance level of $4. However, with sellers still present in the market, there is a risk of a pullback to $3.24 if buyers fail to maintain their momentum. Despite this potential retracement, if demand remains strong, SUI could ultimately break through the $4 barrier and continue its upward trajectory.

Conclusion: Hope for a Price Recovery

SUI is currently at a crossroads, with its fundamentals showing promise despite recent price declines. The surge in daily active addresses and growing demand for the altcoin signals a potential for upward momentum. If buyers can hold onto their positions and push through resistance levels, SUI could see a price recovery that takes it back to $4. However, the market is still subject to volatility, and the ability of buyers to maintain their positions will be key in determining whether SUI can continue its bullish run or face further retracement.

Investors and traders alike will need to keep a close eye on SUI’s next moves, as rising demand and increasing network engagement suggest that the altcoin’s potential for growth is far from over.