SUI's Rollercoaster Ride: Is a Comeback on the Horizon?

Hold onto your hats, crypto fans! SUI might just be gearing up for a wild rebound, with momentum surging on both the technical and on-chain fronts. Get ready for a thrilling ride!

As of Monday afternoon in Asia, Sui (SUI) was hovering around $3.20, down a gut-wrenching 25% from its peak last month. The market cap? A cool $10.8 billion. Talk about a rollercoaster!

One of the big hurdles dragging SUI down recently? The SEC's decision to hit the brakes on the proposed Canary SUI ETF. That move would've thrown open the doors for investors to get in on the action, but delays like this can really shake up market sentiment, especially when things are already on shaky ground.

And if that wasn't enough, SUI's been feeling the heat after a massive exploit rocked the Cetus Protocol, one of the core DeFi platforms built on the Sui network, back on May 22. We're talking about a staggering $223 million in assets wiped out, sending shockwaves through the entire ecosystem.

But wait, there's a glimmer of hope on the horizon! According to the latest data, the total value locked across Sui-based DEXs has skyrocketed by 4.8% over the past week. Right now, Sui's total TVL is sitting pretty at $3.05 billion, a jaw-dropping 50% higher than the $2 billion figure from early April.

What's driving this growth? Brace yourself for a surge in Bitcoin-pegged assets on the network. We're seeing around 10% of Sui's TVL tied up in tokens like wBTC, LBTC, and stBTC. And that's not all – over $1.1 billion in stablecoins are now circulating in the Sui ecosystem, pumping up liquidity for both developers and traders.

Adding fuel to the bullish fire, SUI's weighted funding rate has been in the green for nine straight days, showing that traders are still betting big on an upward swing.

Sui Price Analysis: Buckle Up for a Wild Ride

On the technical side of things, it's looking like SUI might be breaking out of a multi-week falling wedge pattern on the daily chart. And you know what that means – a reversal could be right around the corner!

But wait, there's more! SUI has just pulled off a golden cross, with the 50-day simple moving average soaring above the 200-day SMA. This is one of the most hyped-up bullish signals out there, and it often marks the start of a new uptrend.

The last time SUI formed a golden cross was back in late 2024 when it was trading around $1.10. And guess what happened next? A mind-blowing 380% rally that sent SUI skyrocketing all the way to its all-time high of $5.35. Will history repeat itself? Only time will tell!

If the bulls keep charging and momentum keeps building, SUI could be on track to not just retest that ATH but maybe even smash right through it. Keep your eyes peeled for the next major resistance level at around $4.31. If SUI can break above that, it could be off to the races, potentially surging towards the 161.8% Fibonacci extension at $5.92.

But hold on tight – we're not out of the woods yet. The RSI has started trending upward, but it hasn't crossed above 50 just yet. If it can make that move, it could be a sign that the buying momentum is really starting to kick into high gear.

However, a golden cross alone might not be enough to keep the rally going strong without some serious follow-through from buyers. And let's not forget about the lingering bearish overhang, like the SEC's delay of the spot SUI ETF, which could put a damper on things in the short term.

If the bulls don't step up with some serious buying power, SUI's price could take a nosedive, with $2.33 acting as the key support level to watch on the downside.

Disclosure: This article is for entertainment and educational purposes only. It's not investment advice, so don't go betting the farm based on what you read here!