SUI Price Rallies 108% in 6-Days as Grayscale Triggered $120M Inflows

SUI Price Analysis:

SUI price reached $0.96 on Aug 10, rallying 108% in the last 6 days, market data shows how bull traders have bet over $120 million on SUI since Grayscale’s recent announcement. Will SUI advance above $1?

Why is SUI Price Going Up: Grayscale Impact

SUI is the native cryptocurrency of the SUI Layer-1 blockchain, which is designed to deliver transaction speed and facilitate deployment of smart contracts.

Since August 5, both SUI and Bittensor (TAO) have outshone the market, following Grayscale’s launch of new cryptocurrency investment trusts, composed of SUI and TAO.

Grayscale’s decision to include SUI and TAO in its portfolio is perceived as a strong vote of confidence in the long-term potential of these assets.

The creation of these investment trusts not only provides institutional investors with a new avenue to gain exposure to SUI and TAO but also signals that Grayscale sees substantial future value in these tokens.

Following the announcement both assets witnessed a sharp increase in buying pressure. However, SUI appears to be extending its gains as the week progresses.

After delivering 94% gains TAO’s rally halted on August 9, and has since retraced by about 13% as of August 11. But, in comparison, SUI has continued its upward trajectory, pushing its gains to over 108%.

This divergence hints at the presence of an additional bullish catalyst driving SUI’s price higher, beyond the early impact of Grayscale’s announcement.

SUI Open Interest Has Spiked $120M Since Grayscale’s Announcement

Further affirming the bullish outlook for SUI, derivatives market data shows a substantial spike in Open Interest since Grayscale’s announcement.

Coinglass’ Open Interest chart below represents the total number of outstanding derivative contracts, for a crypto asset. A rise in Open Interest typically signals that new money is flowing into the asset, often an indicator of sustained price momentum.

As shown in recent Coinglass data, SUI’s Open Interest climbed from $56.95 million on August 7 to an impressive $180.97 million by August 11. This sharp increase suggests that market participants are increasingly betting on continued upward movement in SUI’s price.

While the 108% price rally is significant, it still lags behind the explosive growth in Open Interest, indicating that further upside potential remains. This discrepancy could serve as a bullish catalyst, potentially propelling SUI above the $1 mark in the days ahead.

SUI Price Forecast: $1 Target Within Reach

From a technical analysis perspective, SUI’s current momentum strongly suggests that the $1 level could be within reach in the near term. The Ichimoku Cloud, a widely used indicator to gauge momentum and trend direction, shows that SUI is trading above the conversion and base lines, signaling a strong bullish trend.

Furthermore, the recent price action has broken through the lower boundary of the Ichimoku Cloud, often considered a significant resistance level, and is now testing the upper boundary.

The next key resistance level to watch is $1.00, which also coincides with a psychological round number that could attract significant selling pressure.

If SUI can clear this hurdle, the next target would likely be around $1.10, where another layer of resistance is anticipated. On the downside, the first support level is around $0.85, with stronger support at $0.70, which aligns with the base of the Ichimoku Cloud.