SUI Crypto Heading For Bullish Relief Amid Support from WLF?

SUI crypto could be a healthy candidate for a sizable bullish relief especially now that market sentiment is showing signs of recovery.

Speaking of signs, on-chain data recently revealed a surge in activity that could offer insights into the next potential move.

SUI crypto already established itself as one of the most bullish coins in 2024, but has since then experienced a substantial discount. Its $2.82 press time price tag represents a 42% discount from its previous ATH.

The discounted price tag may already be attracting a lot of attention especially after price recently formed a bullish price-RSI divergence.

In addition, SUI price has been moving in a falling wedge which is traditionally considered a bullish breakout sign.

Among the bullish signs include the recent demand surge after bottoming out on March 4th. Interestingly, on-chain volumes were on the rise, with derivatives volumes spiking by 125% in the last 24 hours. This was accompanied by a 13.84% open interest gain.

Sui Crypto Price Secures Unexpected Collaboration

The surging SUI-related activity could be linked to a recent announcement. The Sui network announced on 6 June that it will collaborate with World Liberty Financial to explore DeFi opportunities.

Even more interesting is that the official announcement revealed that SUI will be part of the Trump-linked organization’s strategic token reserve.

World Liberty Financial’s involvement with Sui network could thus bring more attention to the SUI token. An outcome that has the potential to support more demand for the cryptocurrency.

SUI open interest weighted funding rates surged to the second highest level observed since 3 February. This means a liquidation event is on the cards and short liquidations were already higher at the time of writing.

On the spot side of things, SUI token outflows were dominant in the last 5 days. However, note that the netflows shrunk from -$22.9 Million on 3 March, to -$4.56 Million as of 6 March.

The declining negative netflows confirmed that the bears were indeed cooling off. Potentially paving the way for a demand comeback.

Although demand made a comeback in the last 2-days, it is worth noting that bearish market conditions may aid the bears in regaining dominance. Nevertheless, there is more Sui network-related activity that may boost investor confidence.

Sui Network Creates New Liquidity Milestone

The Sui network continues to enjoy significant growth, especially in its stablecoin market cap which more than doubled in the last 3 months.

For perspective, the network had $304.98 million worth of stablecoin liquidity as of 11 December 2024. That figure just surged to $647.31 Million as of 6 March 2021.

Sui crypto TVL was down to $1.36 Billion compared to $2.18 Billion as of 7 February. However, this decline mostly has to do with the declining value of the SUI coin.

Sui TVL in terms of tokens has been on the rise from as low as 398.27 million coins on 26 December to 509.88 million coins as of 5 March. The SUI TVL and stablecoin market cap growth confirm recovering confidence in the network.