Examining if SUI’s price will hold above $2 after its TVL rises 3x

• SUI’s price surged past $2, with strong resistance at $2.135, as bullish momentum built on the charts
• Rising Open Interest and positive funding rates indicated sustained confidence in SUI’s upward trajectory

The Total Value Locked (TVL) of Sui [SUI] has seen some explosive growth, tripling since 5 August and reaching an impressive $1.03 billion. This remarkable rise in TVL coincided with SUI’s price climbing to $2.01 – A 10.77% hike at press time. 

Consequently, this rising TVL and price surge combination has sparked speculation about Sui’s potential for broader ecosystem expansion.

Can SUI hold above key resistance levels?

SUI broke through key resistance levels, and traders are now watching for a possible breakout. At press time, the next resistance was positioned at $2.135 based on the Bollinger Bands, which have been showing some signs of narrowing volatility. Additionally, the RSI level of 59.34 suggested the market is still bullish, but not yet overbought. 

However, if the RSI approaches 70, there is potential for a short-term pullback. Traders should closely monitor these technical indicators to gauge whether SUI can maintain its upward trend or face a correction.

Source: TradingView

Top holders and their influence – Will whales support the rally?

At the time of writing, SUI’s top holders held 55.93% of the circulating supply, as shown in the accompanying data. Although whale activity has slightly decreased from earlier levels, they still control a significant portion of the supply. 

Therefore, their actions will likely be crucial in determining SUI’s future price movements. Will these whales continue holding, which could stabilize prices, or will they start selling, potentially causing greater volatility?

Source: Santiment

SUI’s rising Open Interest – What does it mean for SUI’s price?

Moreover, Open Interest for SUI rose by 15.36%, climbing to $518.27 million on the charts. This uptick is a sign of growing market confidence and speculative activity around the token. 

Additionally, higher Open Interest often leads to greater liquidity, which may help support the prevailing price levels and extend the rally.

Source: Coinglass

OI-weighted funding rate – Is the market favoring the bulls?

Finally, the OI-weighted funding rate for SUI shifted to a positive 0.0037% – A sign of bullish sentiment among traders. When long positions are paying a premium, as they are now, it often means confidence in the token’s upward trajectory. 

However, this could also lead to over-leveraging, which might create short-term selling pressure if liquidations occur.

Source: Coinglass

Read Sui’s [SUI] Price Prediction 2024–2025

Is SUI ready for its next breakout?

With the combination of SUI’s rising TVL, strong Open Interest, and favorable funding rates, the token may be well-positioned for further growth. However, breaking through the $2.135 resistance is essential for SUI to sustain its upward momentum.

If market conditions remain favorable, SUI could be on the cusp of a significant expansion.