Sui Price Testing Ascending Support As TVL Drops 12%
Sui sees a drop in TVL follows price drop. Key support is being interacted by can it hold?
Key Takeaways
- SUI TVL falls 12% and still outperforms PulseChain and Cardano.
- SUI price tests crucial ascending support after 27% drop.
- SUI’s recovery potential is seen despite the current price and TVL dip.
Sui blockchain has encountered a notable dip in its total value locked (TVL), seeing a 12% decline from its record peak This comes amidst broader market fluctuations that have seen the blockchain outperform rivals like PulseChain and Cardano in the same period, despite the downturn.
Sui’s price is in a major decline, falling by 27% from its March 27 peak, and it is currently testing its crucial ascending support level. The community watches closely, pondering the implications of this TVL reduction on the platform’s value and its native token’s future trajectory.
SUI TVL
DeFiLlama’s recent data , reported on April 8, indicates a 12% decrease in the total value locked (TVL) on the Sui blockchain, now at $666 million, down from a record $724 million observed on March 28.
This dip reflects a broader decline trend from its peak. Yet, Sui has demonstrated resilience by outperforming other notable blockchains, such as PulseChain and Cardano, which reported more significant drops of 23% and 16% during the same period.
Despite this recent downturn, Sui’s TVL has seen a significant growth of 25.5% over the last month and an impressive increase of around 68% since the beginning of the year. It is up again from its April 5 low of $632 million but is still on a lower high of $672 million today, April 9.
This performance, especially compared to its peers, has sparked optimism about Sui’s potential to continue its growth trajectory, increase DEX volume, and accumulate value in its TVL. Such progress could position Sui as a contender among the top 10 blockchain platforms.
However, the downturn in Sui’s TVL is reflected in the performance of its native token, which has experienced a significant drop from its highest trading price over the past weeks. This trend highlights the Sui ecosystem’s current challenges amidst its promising developments.
SUI Price Analysis
Following its launch, the price of SUI experienced a sharp increase, only to undergo a correction and stabilization phase shortly after that. It reached its lowest point in October of $0.36, setting the stage for a remarkable recovery that saw the price soar over 500% to hit a record high of $2.10 on March 27.
Since its peak, we saw the price decrease and is now looking for support at its ascending level anchored at the January 23 low of $1. Should we see a breakout below, it would suggest that the previous uptrend ended as a five-wave impulse on March 27.
In that case, SUI could face a more significant descending move, reverting to a $1 where the 0.618 Fibonacci level is. However, our first target would be slightly higher at $1.25 as this is where the 0.5 Fib level is.
The daily chart RSI is at 42%, indicating much more room before the price starts getting oversold. In addition, the MACD oscillator suggests that the price is in a downtrend, further strengthening the anticipated drop.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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