Sui, the native cryptocurrency of the Sui blockchain, witnessed heightened volatility during Tuesday’s US market hours. The daily chart displayed a significant price spread from $3.80 to $4.05, while the candle body formed a doji with an insignificant loss of 0.08%. Despite the uncertainty, the derivative market exhibits a significant spike in futures open interest, indicating an increase in speculation about a major move in the near future.
Sui Network Sees Significant Growth in TVL and Futures Activity
Over the past two weeks, the Sui price has showcased a strong rally from $2.8 to a recent high of $4.24, registering a 51% growth. The primary catalyst behind this surge was investor optimism following the U.S. House of Representatives’ passage of the three crypto bills.
Moreover, the SUI futures open interest surged to a high of $1.2 billion, indicating the increasing speculation in the market, despite a major move already priced in. The surge in open interest indicates more traders are opening new positions in the future market, generally leading to increasing volatility and a sharp move in the price.
Simultaneously, total volume locked (TVL) on the Sui network has climbed sharply from $1.56 billion to a recent peak of $2.266 billion, registering a 45% surge. The rising TVL suggests that more users are actively locking assets in DeFi protocols built on Sui, trusting its long-term viability and profitability.
SUI Price Nearing a Major Breakout From Bullish Pattern
The four-hour chart analysis of SUI price shows the current consolidation is forming a bullish contraction pattern called a pennant. Since last weekend, the lateral trend has been actively resonating between the pattern’s two convergence trendlines, indicating a lack of initiation from buyers or sellers.
However, this move typically allows buyers to regroup the bullish momentum after a strong rally and prepare for its next breakout.
The bullish alignment between the exponential moving averages (20 < 50 < 100 < 200) reinforces the broader bullish sentiment in the market and the opportunity for an upward breakout.
Therefore, if the buyers flip the overhead trendline into a potential support, the coin price could bounce 8% to challenge the $4.3 resistance, followed by a surge toward the $5 mark.
If the coin price breaks below the bottom trendline, the coin price may enter a renewed correction trade.
Read more: ADA Poised for Breakout as $0.94 Short Squeeze Looms: $3 Next?
