SUI Network (SUI) Experienced a 30% Correction, Raising Interest Among Investors

After a recent surge, SUI Network (SUI) experienced a 30% correction, with prices approaching the $1.5 level, raising interest among investors.

After a recent surge, SUI Network (SUI) experienced a 30% correction, with prices approaching the $1.5 level, piquing the interest of investors.

Historically, significant price corrections have often signaled entry points. SUI’s current position could indicate an opportunity for those awaiting a rebound. Given that the broader market has been consolidating, its upcoming price movements are under close watch.

Prices have settled below $2, a level that buyers recently attempted to reclaim. The effort encountered resistance, suggesting that SUI might continue its correction to around $1.67.

Traders have noted that establishing positions near $1.5 could yield gains as it stabilizes, creating anticipation for a possible run higher. The correction aligns with the coin’s typical retracement range of 30% to 50%, which has historically signaled a prime buy zone.

Support Seen Near the 50-Day EMA

On the daily chart, the price encountered support at the 50-day Exponential Moving Average (EMA). While some analysts viewed this support level positively, there were concerns about broader chart patterns on the weekly timeframe.

Many traders felt that holding off until the weekly close would help confirm SUI’s potential for a rebound.

Momentum indicators, such as the Moving Average Convergence Divergence (MACD), turned bullish on the 4-hour timeframe. This fueled optimism about a possible breakout soon, especially if SUI breaks above current resistance.

The Impact of SUI Ecosystem Memecoins at Key Levels

As SUI approaches critical price levels, the ecosystem's memecoins, like $FUD and $TISM, began drawing liquidity into SUI's Layer-1 blockchain.

With SUI's meme market cap at $165 million, some analysts compared it to Solana's memecoin ecosystem, which is valued much higher. This comparison suggests potential for growth in SUI's memecoin space, with some investors targeting a meme market cap closer to $700 million.

Meanwhile, the SUI DeFi ecosystem also saw growth, with the release of DeepBook V3 bringing increased liquidity and decentralization. The recent interest in memecoins added momentum, especially as some tokens reached new highs.

Early supporters who received tokens like $FUD through airdrops from Fuddies NFTs saw significant gains. As SUI's price trends higher, there were expectations that its memecoin market could expand further, especially given the increased activity in recent weeks.

Anticipating SUI's Next Move

With the MACD indicating positive momentum, if SUI manages to hold above the $1.5 level and consolidate, it could set the stage for a strong rally, potentially pushing it toward the $5–$6 range.

Some analysts anticipate a potential “memecoin supercycle” in 2024, where coins within strong ecosystems like SUI's may gain broader attention.

For now, SUI's correction phase could serve as an entry point for those looking to secure positions ahead of a potential rally. If support levels hold, SUI may chart a path higher, driven by ecosystem growth and strong technical indicators.