SUI Crypto News: With ETF Filed & Growing Adoption, Can It Hit $3 & Outperform SOL?

This application comes to join another five that Canary has submitted in the past few months. Now that Donald Trump’s pro-crypto administration has taken over the reins of the regulatory agency, asset management firms see high odds that these products will be approved.

Sui is a smart contracts platform that offers cheaper and faster transaction speeds compared to its rivals Solana and Ethereum.

Last year, its utility token SUI rose by 432.2%. As with most other cryptos, its performance this year has been negative with annual losses currently standing at 36.8%. However, Sui’s ecosystem seems to be expanding rapidly according to on-chain data while developers’ interest in the network’s capabilities seems to be growing as well.

SUI’s Usage and Stablecoin Volumes Surge

Data from DeFi Llama shows that the amount of stablecoins in the Sui blockchain has nearly doubled this year, moving from $374 million to $674 million in just three months.

Meanwhile, the 7-day moving average for daily active addresses has also jumped in the past year from around 19,000 back in April 2024 to 1.5 million at the time of writing as per data from Artemis.

Sui Lend and NAVI Protocol are the two largest decentralized finance (DeFi) applications running on this blockchain. They have a combined market cap of $778 million at the time of writing.

Sui is theoretically capable of processing nearly 297,000 transactions per second. This is more than 4 times the Solana network’s maximum capacity. Meanwhile, its transaction fees are less than a tenth of what users typically pay for transacting on the Solana blockchain.

This gives Sui a competitive edge in the smart contracts space. However, its security and level of decentralization are still a matter of concern as the network only has 113 validators. A closer look at the network’s staking pool shows that the top 10 entities currently hold nearly 22% of the total amount staked.

SUI Eyes $3 as Positive Momentum Gains Traction

The daily chart for SUI on Kraken shows a bullish breakout of a descending price channel that started to form in January. This is the first encouraging sign that could indicate an ongoing trend reversal.

Momentum indicators are favoring a bullish outlook for the token as the Relative Strength Index (RSI) crossed above the signal line around 12 days ago while the MACD’s histogram shows steadily rising positive momentum readings.

SUI bulls could be eyeing a retest of the $3 level shortly, meaning that the token’s short-term upside potential currently stands at 15.4%.

Traders Should Wait for a Better Entry Price as RSI Flashes Overbought

Moving to the hourly chart, we can see how bullish SUI is at the moment as the Relative Strength Index (RSI) just entered overbought levels. This probably sets up the token for a pullback in the next few hours but it is a clear indication that bulls are dominating the price action at the moment.

SUI broke through the $2.5 resistance like butter during the Asian session and could retrace to the 0.500 Fibonacci at $2.5355. Depending on how the price action behaves at this point, a long position at this level would offer the highest possible risk-reward ratio.

The next resistance for SUI currently stands at around $2.9, at which point traders should be cautious as this is trend reversal territory and market sentiment remains heavily depressed.

It is unclear if the crypto market is ready to support a reversal at this point. Hence, as most cryptos near these critical levels, volatility may rise.