The Sui token has pulled back to $3.84 after hitting a recent high of $4.21 on May 12. Despite the dip, Sui remains a top-performing layer-1 blockchain asset, having more than doubled in value during its latest rally. However, market indicators now show signs of cooling momentum.
Key Market Indicators Show Slowdown
24-hour trading volume down 30.5% to $1.13 billion.
Derivatives activity decreased by 31.2% to $3.07 billion.
Open interest slightly down 1.8% to $1.8 billion.
According to Coinglass data, this reflects a retreat in short-term speculation, as Sui enters a consolidation phase.
Partnership with 21Shares: A Catalyst for Growth?
On May 14, Sui announced a strategic partnership with 21Shares, a leading crypto exchange-traded products (ETP) provider. The collaboration aims to:
Increase global awareness and adoption of Sui.
Expand Sui’s presence in the U.S. market as regulatory conditions improve.
Drive institutional interest through joint product development and research initiatives.
Federico Brokate, head of U.S. business at 21Shares, emphasized Sui’s technical strengths — notably its speed, scalability, and DeFi ecosystem — as key reasons for the partnership.
Technical Analysis: Consolidation in Play
Resistance: SUI is consolidating below the $3.92 resistance level.
Support: Key range at $3.66–$3.80.
RSI: Still bullish at 63, though momentum is weakening.
MACD: Bearish crossover signals potential for further cooling.
Stochastic RSI: Neutral-to-sell signals.
Bollinger Bands: Narrowing, indicating reduced volatility.
Despite these signals, all major moving averages (10–200 days) remain in buy territory, suggesting the broader trend is still bullish.
DeFi Ecosystem Strength
According to DeFiLlama, Sui boasts a total value locked (TVL) of $2.06 billion, ranking eighth among blockchains. This marks a 70% increase in TVL over the past month, reflecting robust user and developer activity.
Outlook: Eyes on the $3.66–$3.80 Support
If Sui can maintain support in the $3.66–$3.80 range, the token may consolidate before attempting another breakout. The 21Shares partnership, alongside Sui’s growing ecosystem, could serve as key drivers for renewed investor confidence and upward price action.
Conclusion
While short-term momentum has cooled, the Sui-21Shares partnership presents a promising catalyst for sustained growth. Maintaining key support levels and positive ecosystem developments will be crucial for Sui’s next leg higher.
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