Aug 13, 2024
6thTrade
SUI has been making headlines lately, with its price soaring to new heights. In just a week, the cryptocurrency has shot up by an astonishing 93%, including a 13% rise in the last 24 hours alone.
Let’s break it down.
On August 5, SUI was hovering around $0.50. Fast forward to August 12, and the price had nearly doubled, reaching close to $0.95. This impressive rally has pushed SUI’s market cap beyond $2.4 billion, making it the 30th largest cryptocurrency by market value.
Grayscale’s Influence:
A major catalyst for this surge has been Grayscale Investments. On August 7, Grayscale rolled out new crypto investment trusts, and SUI made the cut. When Grayscale backs a coin, it’s a green light for many investors, not just individuals but big institutions too.
This kind of endorsement can significantly boost a coin’s reputation, making it more attractive to a wider audience. The broader recovery in the crypto market also helped SUI’s rise, with the global market cap climbing from $1.9 trillion to $2.07 trillion around the same time.
But it wasn’t all smooth sailing. While SUI’s price was climbing, the total open interest in the market dipped from $360 million to $341 million. This suggests that many short sellers were caught off guard by the rally, forced to buy back the coin to cover their positions, which only pushed the price higher.
What’s Driving SUI?
Raoul Pal, a well-known macro analyst, pointed out that SUI’s surge took many by surprise. However, he cautioned that SUI still needs to break its downtrend compared to SOL to truly prove itself.
The memecoin craze that has swept the crypto world in 2024 also played a role in SUI’s ascent. Like it or not, memecoins have a way of grabbing attention, and SUI has ridden this wave effectively. The coin has broken out of a downtrend and bounced back strongly from what traders call “resting liquidity,” suggesting there’s a solid base for further gains, especially as the market recovers from its summer slump.
Marketing is another big factor. Rumors are swirling about a massive marketing push for SUI in Q4, with millions of dollars expected to flow into the ecosystem. When you combine a bottomed-out chart with big marketing budgets, it often spells good news for a coin.
Andrew Kang, the founder of Mechanism Capital, mentioned that a recent technical upgrade on the SUI platform could open doors for new, innovative applications. This upgrade might be another reason behind SUI’s recent surge.
Kang isn’t the only one feeling bullish about SUI. The market sentiment is clearly in favor of this coin, with aggressive price action and no signs of a pullback. If the recent performance upgrades deliver as expected, SUI’s upward trajectory could continue.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile and can result in significant financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The views expressed in this article are those of the author and do not necessarily reflect the opinions of the publisher or any affiliated parties. Investing in cryptocurrencies carries inherent risks, and past performance is not indicative of future results. Proceed with caution.
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