In the rapidly evolving realm of decentralized finance (DeFi), events like Bullshark Quest 2 run by Mysten Labs in association with the Sui Foundation play a pivotal role in shaping user engagement and blockchain adoption.
In this analysis, we’ll dive deeper into the intricacies of this event, discussing its goals, rewards system, and the strategic decision to extend its duration. We have seen its impact on the SUI token price as it experienced a rise of 38% since August 18.
As we unpack these facets, we aim to shed light on the broader implications of such events on the DeFi landscape and the token price.
The Bullshark Quest 2 event, orchestrated by Mysten Labs in collaboration with the Sui Foundation, is a DeFi-focused initiative launched on July 28, to engage the community with decentralized finance (DeFi) applications and reward participants through substantial SUI token rewards.
Two main reward pools have been established, with one reaching a record of 5,000 participants and the other designed for equitable distribution among all other eligible players. Each pool contains 2.5 million SUI tokens, totaling a combined reward of 5 million SUI.
Initially set to end on August 29, it was extended to September 6 following a successful commencement. This extension provides participants with an enhanced 8-day window to engage more deeply with DeFi decentralized applications (dApps).
Investors stand to gain from this extension as it offers an extended opportunity for exposure and engagement with the DeFi ecosystem. As participants delve deeper into the decentralized financial world, this event simultaneously enhances awareness of the SUI token, potentially driving its demand and value upward.
The extended timeframe, along with the collaborative vision of Mysten Labs and the Sui Foundation, underscores the drive to ensure users can maximize the benefits of the Bullshark Quest 2 event.
Sui is an innovative decentralized Layer 1 blockchain created by Mysten Labs. It aims to revolutionize asset ownership by utilizing the Move programming language within its advanced smart contract framework. The SUI token is its native currency currently used on the Sui platform.
SUI Price Analysis
Since its release, SUI token price has been in a downtrend. It started at $1.50 before recording a 70% decrease, reaching its lowest level of $0.45 on August 17.
From August 17 so far, some positive price actions happened, following the RSI entering the oversold zone on the 4-hour chart. Last time the RSI entered the oversold zone was on June 10, resulting in a local low before the price started to increase by 70%.
Current rise has stopped at $0.62 as it reached the resistance point of the descending triangle but also the upper bound of the RSI indicator. Will it continue to move upward or have we seen another low in this larger downtrend, with more room to the downside ahead?
There is a possibility that the price has ended its descending move on August 17 on a five-wave impulse to the downside. According to this count, a higher degree of ABC correction that started when the token was released into the market has finally ended.
If this is true, then the rise seen since then is the first sub-wave of the starting five-wave impulse to the upside, which may lead the price towards a zone around $1. To validate this projection, we would need to see a breakout above the descending trendline, but that might not occur straight away.
A minor rejection now seems more likely. However, if the price begins an uptrend, the expected rejection should establish the first higher low, indicating that the support level is rising.
On the other hand, if the price is strongly rejected and experiences an impulsive decrease, this scenario would be invalidated, and we would anticipate further lows.
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.