SUI Network Sees 79% Surge in Daily Active Users Despite Dip in Price

Sui, a layer-1 blockchain platform, has recently witnessed a notable surge in daily active accounts, reporting a 79% increase over the preceding 72-hour period.

This surge indicates a renewed interest in and adoption of the network, signaling heightened user engagement within the Sui ecosystem.

However, despite this positive uptrend in network utilization, the price of Sui’s native token (SUI) experienced a 4% decline over the past 24 hours, triggered by substantial market volatility.

SUI Sees Surge in Active Users

The token’s price fluctuated approximately 7% of its value, between intraday highs of $3.98 and lows of $3.69. Notably, $SUI initially shows bullish momentum, climbing from $3.88 to $3.98, fueled by institutional trading volume and market adoption.

However, the asset encountered significant resistance around the $3.97 to $3.98 price range, where corporate selling pressure intensified.

Subsequently, trading volume saw a dramatic reversal due to the exceptional trading activity of 35.3 million units. This built a critical support threshold near $3.71 to $3.72, where institutional buyers sought to defend existing valuations.

Additionally, SUI’s derivatives market also experienced a wave of long position liquidations, with open interest contracting by 15% to $1.79 billion, according to CoinMarketCap data.

Moreover, funding rates, which dictate the cost of maintaining leveraged long positions, decreased to 0.0083%, a sharp decline from their July peak of 0.075%. This reduction in funding rates diminished the incentive for traders to hold bullish leveraged bets, indicating a cooling in overall market sentiment surrounding SUI.

Nonetheless, despite the bumpy performance over the past 24 hours, the token remains up approximately 6% over the past seven days. This positive, longer-term performance is attributable to several positive developments within the Sui ecosystem that garnered investor attention in the preceding week.

Market Analyst Eyes Breakout

Of particular note, crypto analyst Alex Clay has observed that the compression within a symmetrical triangle pattern appears to be nearing its conclusion.

According to Clay’s analysis, this signals an imminent breakout that could potentially propel SUI into double-digit territory, noting three specific upside targets: $7.9, $9.75, and $11.7.

These targets are based on previous swing highs and Fibonacci retracement levels. The initial target, located just under $8, is likely to serve as the first significant resistance point.

However, should the momentum persist, the subsequent resistance level may emerge near $9.75, with the ultimate target set at $11.7. Data from CoinGecko indicates that SUI is currently trading at $3.66, with 24-hour trading volume exceeding $1.26 billion.

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