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SUI Price Prediction – SUI Could Rally to $5 If Bulls Clear Resistance Zone

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Highlights:

  • SUI is trending towards a resistance zone between $3.39 and $3.99
  • Clearing this supply zone could trigger a rally to prices above $5
  • Return of risk-on sentiment in the markets could trigger such a rally

SUI (SUI) is a top cryptocurrency performer today and continues gaining momentum as the day proceeds. When writing, SUI was trading at $3.02, up by 10.12% on the day. SUI’s daily trading volumes are also on the rise, up by 10.13% to stand at $10.46 billion. This is indicative of growing investor interest in SUI despite the intraday pump. It means the average investor expects SUI to continue going up in the foreseeable future. The prevailing sentiment around SUI has a solid basis. Multiple factors support a possible price rally for SUI in the short to medium term.

Regulatory Environment Favors A SUI Price Rally

One factor that supports SUI is the broader market, which, by many metrics, is turning bullish. One of these metrics is the increasingly favorable cryptocurrency environment in the US. There is chatter in the markets that the SEC is looking to create a new token listing standard.

The implication is that altcoin ETFs will become much easier to launch in the US. SUI is one of the altcoins that would benefit from such a token standard. That’s because it is already one of the most credible L1s in the market, and already has widespread adoption in the market. As such, SUI ETFs could quickly become a reality and also gain widespread adoption. The impact would be a SUI rally that could easily push it to prices above $100 in a short time. 

Expectations of US Rate Cuts Could Send SUI to New Highs

Still on macro factors, there is a growing expectation in the market that the US is about to enter a period of monetary easing. Already, speculation is on the rise that the US could start cutting interest rates this month. Whether rates are cut this month or at some other point within the year, the implication is that the markets will continue to turn risk-on in anticipation of a rate cut. This supports high-potential, risk-on assets such as SUI.

Still on macro factors, expectations of an interest rate cut are coming at a time when the geopolitical tensions in the Middle East and elsewhere are starting to ease up. The combination of these two could see top altcoins like SUI go parabolic in a short time.

SUI Ecosystem Growing, And It’s A Bullish Signal

Besides an increasingly favorable macro environment, SUI stands to benefit from strengthening internal fundamentals. One indicator of its growing strength is its growing stablecoins ecosystem, which has recently recorded healthy growth and currently stands at close to $1.2 billion in stablecoin supply. 

SUI’s total value locked is also on the rise, and currently stands at close to $1.8 billion. SUI’s internal strength is also evident in the fact that institutional adoption is on the rise. Recently, Lion Group, a Nasdaq-listed company, announced that it was buying SUI as part of building its $600 million cryptocurrency treasury. As more institutions make big SUI purchases, the price could go up over time.

Technical Analysis – SUI Trending Towards Resistance Zone

From the charts, SUI is currently trending towards a resistance zone between $3.39 and $3.99. If bulls are strong enough to push SUI through this resistance zone, then a retest of its $5 all-time highs, or even higher, could follow in the short term.

Sui Price
Source: TradingView

However, if bulls fail to breach the resistance zone, SUI could drop to $1.88, a multi-week support level. Of these two scenarios, a rally to $5 seems more likely. This is mainly due to the macro environment increasingly turning risk-on. This growing investor interest in SUI could send the price to new highs.

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