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Cryptocurrency News Articles
SUI Price Prediction: Stalling TVL Growth Raises Doubts After Meteoric Rise
Dec 04, 2024 at 04:00 am
SUI price shows mixed signals after its meteoric rise, currently positioning just 6.5% below its all-time high. The coin’s impressive 97.10% surge in the last 30 days has been supported by significant growth in its DeFi ecosystem, with total value locked reaching $1.75 billion.
SUI price shows mixed signals after its meteoric rise, currently positioning just 6.5% below its all-time high. The coin’s impressive 97.10% surge in the last 30 days has been supported by significant growth in its DeFi ecosystem, with total value locked reaching $1.75 billion.
While technical indicators like BBTrend suggest short-term caution, the strong EMA alignment and sustained TVL levels above $1.4 billion point to underlying strength in SUI’s market structure. The coin faces a critical test at $3.94, with potential for new highs above $4.00 if bulls maintain control.
SUI TVL Is Stabilizing Above $1.4 Billion
The total value locked (TVL) in the SUI blockchain surged rapidly over the last two weeks, increasing from $665 million on Feb. 10 to $1.75 billion on Feb. 18. This substantial growth of over $1 billion in just nine days highlights the swift adoption of SUI DeFi protocols.
As users continue to lock more assets into smart contracts for various purposes, such as staking, lending, and liquidity provision, they effectively reduce the circulating supply of SUI. This scarcity, in turn, can contribute to upward price pressure on the remaining liquid tokens.
The TVL, which is currently at $1.45 billion and seven-day moving average (7DMA) at $1.64 billion, suggests that the growth is sustainable rather than speculative. Sustained high TVL typically correlates with upward price pressure, as locked assets reduce circulating supply while increasing network utility.
With strong platform usage and diminished liquid supply, SUI price could see continued upward momentum if these TVL levels persist.
BBTrend Turned Negative After 4 Days
The BBTrend (Bollinger Bands Trend) indicator for SUI has shifted negative and is rapidly approaching -1, signaling a significant change in market momentum.
This indicator measures price volatility and trend direction by analyzing how price moves relative to Bollinger Bands. Positive values indicate upward pressure, and negative values suggest downward momentum.
The shift from positive to nearly -1 indicates that SUI price is moving notably below the lower Bollinger Band, which is typically associated with increased selling pressure.
This technical warning sign could lead to a short-term price correction as traders often use BBTrend crossovers into negative territory as sell signals. However, extreme negative readings can also indicate oversold conditions that sometimes precede price bounces once selling exhausts.
SUI Price Prediction: Is $4 the Next Target?
SUI price currently shows strong bullish momentum with the EMA (Exponential Moving Average) lines aligned in a favorable pattern.
The price has room for significant upside potential, with immediate targets at the previous all-time high of $3.94 and a psychological resistance at $4.00. This would represent a new all-time high for SUI.
However, the market faces key support levels that need to be held back to maintain the uptrend. A bearish reversal could trigger a cascade of support tests at $3.32 and $3.10, with $2.97 serving as a critical floor for SUI price.
Breaking below these levels could accelerate selling pressure, though the current EMA configuration suggests bulls still maintain overall control of the market momentum.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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