Altcoin
SUI network’s $33B volume milestone – Good news, but roadblocks ahead!
SUI’s next price move could be dependent on a few key things.
- Sui Network surpassed $33 billion in DEX volume, up by 1,479% year-to-date
- The $3 support zone will be critical for SUI’s next move on the charts
At the time of writing, SUI was trading at $3.25, following a 5.48% hike over the last 24 hours. In fact, the altcoin’s price has ranged between $3.19 and $3.53 over the aforementioned period, with its trading volume surging to $1.21 billion too.
After retracing from its all-time high of $3.93 on 17 November, the token seemed to be testing the critical $3.20 to $3.25 demand zone.
Key support zones critical for SUI’s next price move
This area is critical for maintaining bullish momentum, as it coincides with the lower trendline of an ascending channel that has supported the price’s upward movement.
The weekly chart highlighted potential for a rebound if the demand zone holds, with resistances at $3.35 and $3.40, and a target of $5.00.
Source: TradingView
Breaking through the $5-level could set the stage for a rally towards the next major milestone at $7. However, failure to defend $3.20 may lead to a deeper correction, with the next support at $3.
On the 4-hour chart, SUI tested the $3.20 level multiple times, signaling its importance as a key support zone.
Source: TradingView
A breakout above $3.40 could bring the price to $3.50 – A psychological barrier and a significant area of prior price activity.
Conversely, a breach below $3.20 would likely intensify selling pressure, pushing the price towards $3 or lower on the charts.
Sui Network hits $33 billion in DEX trading volume
Sui Network (SUI) reached a significant milestone recently, surpassing $33 billion in cumulative decentralized exchange DEX trading volume. This achievement represented a staggering 1,479% growth year-to-date – Underlining the rapid adoption of Sui’s blockchain ecosystem.
Source: X
The network’s ability to attract liquidity can be seen as a sign of strong market confidence and its expanding footprint in the decentralized finance (DeFi) space.
Positive funding rates reflect bullish market sentiment
SUI’s funding rates have consistently remained positive – A sign of bullish sentiment among perpetual contract traders. Consider this – Since mid-November, the rates have stayed above 0.03%, with the same peaking at 0.06% during the price rally from $2.80 to $3.60.
This indicated that traders have been paying a premium to hold long positions, underscoring confidence in SUI’s upward momentum.
Source: Coinglass
On the contrary, the funding rates briefly turned negative in October when the price dipped to $2.50 to signal temporary bearish sentiment.
As the price rebounded, funding rates shifted back into positive territory, aligning with a hike in Open Interest activity.
The sustained bullish funding rates implied that market participants remain optimistic about SUI’s long-term growth potential.What do the market indicators say?
The Alligator indicator on the 4-hour chart revealed a bearish alignment, reflecting short-term selling pressure.
Similarly, the Awesome Oscillator highlighted negative momentum, with a press time value of -0.1086, despite its histogram flashing a shift.
Source: TradingView
The Chaikin Money Flow index at -0.06 highlighted mild capital outflows, indicating limited buyer interest at its press time levels.
Despite these bearish indicators, however, SUI seemed to remain within an ascending channel. This suggested that its overall bullish structure has remained intact.
