Sui Network’s Growing TVL

Sui Network, known for its advanced transaction speed that rivals even the popular blockchain Solana, has been gaining significant traction. The increase in TVL signifies a boost in the amount of assets locked in the network’s smart contracts, reflecting growing confidence and engagement from the cryptocurrency community.

Price Action and Momentum

The recent surge in TVL is positively impacting the price of Sui Network’s native token, SUI. The SUI/USDT trading pair has recently broken above its hourly downtrend channel, a key technical indicator that suggests a potential shift in market momentum. This breakout is accompanied by strong bullish signs, particularly from the falling wedge resistance zone on the 4-hour timeframe.

Traders and analysts are closely watching these developments. If the current bullish trend continues, it could signal a sustained uptrend for SUI in the long term. The price has already surpassed the upper resistance level of the hourly downtrend channel, but further confirmation is needed to solidify this trend.

Bullish Indicators and Trading Opportunities

The volume oscillator and large 4-hour candles indicate that the momentum is leaning towards further gains. For those looking to capitalize on this potential, a long position around the breakout level of $0.80 could yield significant returns. Analysts are suggesting that if SUI’s price reaches the $1 mark, traders could see a potential return of up to 25% on their investment.

Moreover, the stochastic RSI on the hourly chart is currently in the overbought zone, reflecting strong buyer confidence. This suggests that there may be opportunities to increase investments during any correction phases.

Caution and Support Levels

However, traders should remain vigilant. If SUI’s price falls below the $0.74 level, it could signal a reversal or consolidation phase. In such cases, $0.65 will be a crucial support level to monitor. Proper risk management is essential to navigate potential price fluctuations effectively.

Open Interest and Funding Rates

Examining the open interest in SUI/USDT reveals several key zones where trader activity is notable. The zones between $0.84-$0.847, $0.913-$0.920, $0.971-$0.978, and $1.066-$1.073 have attracted significant positive interest. Conversely, the $0.825-$0.832 and $0.891-$0.898 zones show lower interest levels.

Funding rates, which have recently turned positive according to Coinglass data, further support a bullish outlook. This indicates that long traders are paying those holding short positions, suggesting that SUI’s price in perpetual futures contracts is aligning well with its market value.

Upcoming Token Unlocks

Another factor to consider is the impact of upcoming token unlocks. SUI, along with other major projects like IMX, NEON, WLD, MODE, ZEUS, and GAL, is set to unlock millions of dollars worth of tokens. Historically, such unlocks can lead to price drops due to increased selling pressure. However, there is a possibility that the current price already reflects these future unlocks.

Comparing SUI to Solana

Currently, Sui Network is outperforming Solana in the short term. SUI has seen a 2.5% increase on the hourly timeframe, compared to Solana’s negligible change of -0.03%. Over the daily timeframe, SUI has gained 7.77%, whereas Solana has grown by 3.08%. Despite Solana’s significantly larger market cap—30 times that of SUI—Sui Network’s recent performance suggests it could continue to close the gap.

Conclusion

Sui Network’s surge to over $600 million in TVL is a noteworthy milestone that underscores the network’s growing influence and potential. The positive momentum in SUI’s price and the bullish indicators are attracting significant attention from traders and investors. However, as with any investment, careful consideration of market signals and risk management remains crucial. As SUI continues to gain traction, its future performance will be closely watched by the crypto community.