SUI’s Rollercoaster: Price Drops After 5% Surge – What’s Next?

SUI, the Layer-1 blockchain developed by Mysten Labs, initially surged 5% amid growing investor confidence and new technological developments.

However, the token has since retraced to $4.14, reflecting profit-taking and broader market corrections. Despite the recent dip, SUI remains in focus with key developments such as the Mystceti V2 consensus upgrade and Remora scaling, which promise to enhance transaction speeds and network efficiency.

The market continues to anticipate SUI’s upcoming supply unlock in February, which could influence price movements further. With 50 million active accounts and a Total Value Locked (TVL) of $1.75 billion, SUI’s long-term fundamentals remain strong.

Recent SUI Developments Driving Market Sentiment:

• Network Growth: 50 million active accounts, reinforcing SUI’s position in the Layer-1 race.

• Scalability Enhancements: Remora scaling aims to process 120,000 transactions per second.

• Market Outlook: Despite the recent dip, analysts believe SUI’s bullish potential is intact.

SUI Price Technical Analysis

SUI is currently trading at $4.14, testing a critical support level at $4.05. A break below this level could expose the price to further downside, targeting $3.70 and potentially $3.36. On the upside, immediate resistance is seen at $4.48, with a stronger hurdle at $4.80, aligning with the 50-day EMA at $4.35, which could act as a dynamic resistance.

The break below the ascending trendline signals weakness, but if SUI manages to reclaim levels above $4.20, a recovery toward the $4.48 resistance zone is possible. The overall trend remains cautiously bullish unless further selling pressure drives the price below $4.05.

Key Technical Levels to Watch:

• Support: $4.05, $3.70, $3.36

• Resistance: $4.48, $4.80, $5.12

• 50 EMA: Currently at $4.35, acting as resistance

Looking Ahead: Can SUI Regain Its Momentum?

Despite the recent price drop, SUI’s robust ecosystem and continuous improvements position it for long-term growth. Investors are closely watching upcoming milestones, including token unlocks and further developments in network scalability.

For traders, maintaining caution around the $4.05 support level is crucial, while bullish momentum above $4.48 could reignite upside potential. As competition among Layer-1 blockchains intensifies, SUI’s ability to deliver on its scalability promises will be key in determining its future price trajectory.