SUI price surge reflects growing DeFi adoption and TVL growth.
Bearish divergence suggests potential consolidation, but long-term prospects remain strong.
SUI, the native token of the Sui Network, is garnering significant attention in the altcoin space, having recently achieved an all-time high (ATH) of $4.93, up from a previous range of $4.38. As of now, the token is trading at $4.78, reflecting a 9% increase in the past 24 hours, with its trading volume surging 48% in the same period. Over the past week, SUI has gained 15%, and its monthly performance shows a notable 27% rise, signaling continued bullish momentum for the network.
Notably, the surge in price correlates with Sui Network’s decentralized finance (DeFi) ecosystem reaching a new milestone in total value locked (TVL), now at $1.79 billion. Lending platforms Suilend and NAVI Lending have been pivotal contributors, collectively accounting for 58% of the network’s locked assets. Suilend’s TVL stands at $552.5 million, while NAVI Lending has secured $491.23 million.
The increased TVL is mirrored by a rise in trading volumes, with a record $551 million observed on December 12, coinciding with the TVL peak. This growth has positioned SUI as a prominent player in the DeFi space. The coin’s price performance also reflects the expansion of the DeFi ecosystem, staying above its 50-day moving average.
Look at SUI Technical Indicators
The relative strength index (RSI) of 66 signals that SUI is nearing overbought territory, analysts suggest there’s still room for growth, with a potential rally targeting the $6 mark.
However, there are signs of consolidation as the price experienced a pullback from the $4.50 range. The recent bearish divergence between price and RSI could suggest that the coin may face sell pressure in the near term, with a decline in TVL value further fueling concerns. Despite these short-term fluctuations, Sui remains a strong contender in the altcoin space, supported by institutional interest, including from figures like Raoul Pal, and the launch of the Grayscale Sui Trust.
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