SUI Price Analysis After Flipping Arbitrum On This Front

SUI’s price action has been fluctuating over the past day. After trading in the green and touching the $2.14 level, it was down to $2.10 at the time of writing.

Sui Network (SUI) price trajectory in the near future depends on its ability to stay above or break below $2. That said, positives from its on-chain data are noteworthy.

SUI Price Action and Prediction

SUI price saw a substantial drop to $2.1395 following a back-to-back Change of Character (CHoCH) and Break of Structure (BOS) pattern formations.

The crypto reacted quickly to the CHoCH pattern. It occurred near $2.60, causing an immediate price reversal that triggered a significant decline.

Price regressed to the $2.00 area after another CHoCH barrier underneath $2.20 then entered a pattern of consolidation.

The $2.00 zone showed potential to develop into a new support structure after reaching potential Equal Lows (EQL) status.

Candle bodies hovered above the $2.00 area without breaking it as buyers tried unsuccessfully to absorb selling pressure.

A bullish reversal of SUI at the $2.00 support zone could be seen if prices remained trading above this level of elevation.

A reversal would be validated if SUI closed above BOS level just below $2.40 and potentially prompt another test of the $2.60 supply zone.

Extension of declines below $2.00 closing price would be imminent if price closed below EQL confirming the continuation of the downtrend.

Price drop may move within the middle zone of $1.80, where earlier accumulation was noted.

Generally, the market situation was still cautious unless decline in price structure below the point of $2.20 BOS support level, as short-term changes remain at support $2.00.

Comparing DEX Volumes

Again, SUI’s decentralized exchange (DEX) activity surpassed Arbitrum (ARB) with volume reaching $432.9 Million while ARB only managed $203.9 Million.

The traffic on the network exceeded that on Arbitrum, suggesting substantial user growth.

This way, SUI became a leading driver of markup in stablecoin deposits by accepting $60 Million in less than a day while its stablecoin holdings grew to exceed $800 Million.

The transactions processed reached 500 Million YTD which representing a higher number than what Ethereum (ETH) and Bitcoin (BTC) and both Layer 2 solutions combined, i.e. ARB and Optimism (OP).

The increase in user activities across the network showed that developers and users were becoming more confident with the system.

The sudden surge in volume and inflows might produce a positive impact on SUI price but the continued growth stability remained under examination.

SUI stood to receive price appreciation only when user retention proved sustainable while momentum maintained its growth trajectory.

Activity declines and volatile volume would cause SUI price to move in the opposite direction.

This way, SUI showed strong potential as a Layer 1 and Layer 2 competitor but needed consistent performance to establish this position.

Stablecoin Inflows

Worth noting, the stablecoin inflows into SUI also reached $60.1 Million within the last day resulting in its total supply reaching $800 Million for the first time.

The stablecoin inflows to SUI exceeded those of ETH and Solana (SOL) as it surpassed their respective stablecoin inflow totals of $45 Million and $40 Million.

The majority of other chains which included Arbitrum and OP Mainnet witnessed stablecoin depletion except for Optimism that faced a drastic drop of $90 Million.

The dissimilar change between these metrics suggested that users were shifting their funds toward SUI.

These growing SUI inflows could drive new purchases that would promote price increases provided these trends sustain.

Any slowing or reversing of the flow would create obstacles for maintaining price increases. Both outcomes remained possible.