Sui (SUI) has sparked excitement in the crypto world with a notable price surge, as the token climbed over 5% to $0.935 during Sunday’s trading session. This bullish momentum not only reflects a broader market uptick but is also closely tied to the recent launch of the AUSD stablecoin and significant growth in Total Value Locked (TVL) on the Sui network.
AUSD Stablecoin Boosts SUI Price
The launch of AUSD, Sui’s native stablecoin, marks a significant development for the platform, enhancing its decentralized finance (DeFi) capabilities. Created in collaboration with Nonstop Finance, AUSD is set to provide users with a more secure and efficient asset for DeFi transactions, lending, and borrowing. This new addition has already had a positive impact on the SUI price, helping it regain crucial support at $0.8.
Moreover, the Total Value Locked (TVL) on the Sui network has surged to $641 million, according to DefiLlama. This spike in TVL highlights an influx of capital and increased investor confidence, contributing to the recent rally in SUI’s price.
Technical Analysis – SUI’s Bullish Breakout Potential
A closer look at the daily chart reveals a promising technical setup for SUI. The price action has formed an inverted head-and-shoulders pattern, signaling a potential trend reversal. Despite facing resistance from the 200-day EMA, SUI has demonstrated resilience and a strong bullish foundation at $0.5728. This has led to a V-shaped recovery and a bullish continuation above the $0.80 mark.
Currently, SUI is trading at $0.9264, buoyed by a 5% intraday gain. The token is challenging the declining 200-day EMA while surpassing the 50-day EMA, which could signal a potential breakout. If SUI manages to close above this resistance level, it could catalyze a rally past the $1 mark, potentially targeting $1.43 and then $1.72.
The daily RSI line supports this bullish outlook, showing a positive trend and maintaining a position above the halfway line, approaching the 60% mark. Key resistance levels to watch are at $0.9656, $0.8728, and the psychological $1.001. On the downside, crucial support levels are found at $0.80 and $0.5728.
Also Read: Coinbase Faces Legal Heat – Judge Allows $10 Billion Lawsuit Amid 8-Day Stock Slump
Will SUI Overcome September’s Market Correction?
With the recent bullish momentum and the positive impact of AUSD’s launch, SUI is well-positioned to potentially invalidate the September market correction. Investors and traders will be closely watching for a daily candle close above the critical resistance levels to confirm a bullish breakout and set the stage for further gains.
As SUI continues to gain traction, the coming days could be pivotal in determining whether it will surge past $1 and achieve new highs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
