The SUI blockchain is making headlines after climbing to the fifth position globally in decentralized exchange (DEX) trading volume. Over the past week, SUI recorded more than $2.1 billion in transactions, reflecting a notable rise in network activity and user engagement. However, while the recent surge has captured attention, technical indicators continue to suggest that SUI lacks the necessary momentum to fuel a long-term rally.

With speculative trading and increased user interaction helping to drive recent growth, SUI has surpassed other emerging ecosystems, including Arbitrum, in daily volume. While this reflects increasing interest in the network’s capabilities, SUI still trails significantly behind leading blockchains such as Ethereum, Solana, BNB Chain, and Base when it comes to total liquidity, ecosystem depth, and institutional adoption.

Volume Increase Signals Interest—but Not Yet Maturity

SUI's growth in DEX trading activity represents a 4.49% rise week-over-week, driven by a spike in token movement and short-term positioning by traders. While it now sits in the top five chains by DEX volume, it remains far from challenging the dominance of top-tier networks, which continue to hold their lead thanks to robust infrastructure, broader utility, and deeply established developer communities.

The volume spike marks a promising sign for SUI’s traction in the DeFi space. However, sustainability will depend on whether the project can transition from short-term speculation to building foundational utility and real-world applications.

Mixed Technicals Show Market Still Lacks Direction

Despite the recent boost in activity, SUI’s technical indicators are sending mixed signals. The Relative Strength Index (RSI), which measures buying and selling momentum, has increased from 35.22 to 51.86 in just a few days. While this suggests renewed buying interest, the RSI still hovers in neutral territory and has not breached levels that would indicate a strong bullish trend.

Adding to the uncertainty is the Directional Movement Index (DMI). The Average Directional Index (ADX), which gauges the strength of a trend, has dropped from 14.79 to just 9. An ADX value below 20 generally signals a weak or non-existent trend. Although the +DI indicator is slightly above the -DI, pointing to minor bullish control, the overall market sentiment remains indecisive.

These indicators suggest that while SUI is attempting to rebuild momentum, it remains in a consolidation phase. Buyers are showing some activity, but not enough to establish a firm directional move.

Golden Cross Potential Builds, But Resistance Looms

There are, however, some encouraging signs. SUI's short-term and long-term exponential moving averages (EMAs) are narrowing, which hints at a possible golden cross—a bullish pattern where a short-term EMA crosses above a longer-term one. If this occurs, it could provide the technical confirmation needed to support a stronger rally.

Traders are now watching the $2.28 resistance level closely. A confirmed breakout above this point could open the path toward targets at $2.41 and $2.54, with a potential high at $2.83 if momentum continues to build. This level marked SUI's peak earlier this year and would represent a significant reversal from its current position.

Still, the risks remain. If the price fails to hold above the current support at $2.02, the market could slip into correction territory. A drop below that support may drive the token down toward $1.71, signaling further weakness ahead.

Conclusion: SUI Holds Promise, But Needs Stronger Follow-Through

SUI’s recent rise in DEX volume is a promising development that shows the network is gaining traction in the crowded blockchain space. However, despite its growing visibility, the lack of strong trend confirmation and continued resistance at key technical levels indicate that the rally remains fragile.

To solidify its position among leading blockchain networks, SUI must do more than attract traders—it must prove it can retain them. Continued ecosystem development, developer support, and real-world utility will be essential for turning this early momentum into long-term growth.

For now, SUI remains a blockchain with potential—one that’s worth watching, but still searching for a breakout moment that sticks.