Is Sui the New Fartcoin? SUI Eyes All-Time High as it Enters Low-Volume Area

In the past 24 hours alone, SUI has gone up by 13.6% while trading volumes have surged to $3.75 billion during this same period, now accounting for almost a third of its circulating market cap.

FOMO seems to have entered the scene as SUI is considered by some a potential “Solana killer.”

During this same period, other tokens in the smart contracts space like Solana (SOL) and Ethereum (ETH) have booked much lower gains of 15% and 14.5% respectively.

One of the reasons behind SUI’s mind-blowing rally could be the launch of Grayscale’s SUI Trust, a new passively managed product through which accredited investors (e.g. institutions and wealthy individuals) can invest in this cryptocurrency safely.

Grayscale launched the SUI Trust just two days ago and may have helped accelerate the rally beyond the normal levels we have seen for other tokens.

However, this investment vehicle has amassed just $10 million in assets since its launch, so it’s not like billions have been poured into SUI in two days.

What exactly is fueling the rally then? Maybe a bit of FOMO, mixed with an oversized reaction that ‘s not necessarily a huge development.

Although SUI is a utility token with a clear use case – power the Sui network – its recent rally resembles that of Fartcoin (FARTCOIN), the Solana-based meme coin that has defied the market’s gravity in the past couple of weeks after booking triple-digit gains while the whole market was tanking.

SUI Could Rise to $5

Including today’s sharp uptick, SUI has been going up for five days in a row. The rally was catalyzed by a break above the token’s 21-day exponential moving average (EMA) with strong trading volumes.

SUI has now distanced itself significantly from its point of control (POC) meaning that, as it climbs higher, it will progressively enter areas where there is less resistance from bears as trading volumes have been lower at these levels throughout the year.

In a previous article, we highlighted that a break above the $3.5 level could catalyze a move toward SUI’s all-time high of $5.35.

Sui’s daily transactions had surged by 63.6% from April 19 to April 22 while Solana’s daily transaction volumes have only increased by 8.5%.

The Relative Strength Index (RSI) has hit overbought levels already while the MACD’s histogram has been on an uptrend for five days in a row.

Key Support at $3.2 In Case of a Pullback

Although it is still too early to say that the rally is “stretched”, a pullback may be inevitable at this point.

Key support levels to watch for SUI if the price drops in the next couple of days stand at $3.50 and $3.20.

Looking at the hourly chart, SUI has faced strong selling pressure at around $3.8 but momentum is still quite strong.

Although the RSI has moved below the signal line already after stepping out of overbought territory, it would take a strong move below the $3.5 level to confirm a bearish short-term outlook.

Again, in this lower time frame, the $3.20 area seems like the most plausible landing zone for SUI if (or when) the price pulls back.