SUI Price Prediction: Bullish Breakout, RSI Divergence, and $2B TVL Fuel Momentum

With Bitcoin hitting a 24-hour high above $108,000, altcoins are preparing to bounce back.

SUI, the layer-1 blockchain, is showing promise as it trades within a rising channel, setting a target of $6.

The Bitcoin price today hit a 24-hour high of $108,000 as altcoins prepare to continue their recovery.

Among the altcoins with strong potential is SUI, now trading at $3.86. As the SUI network continues to expand, the token has formed a rising channel on the daily chart, setting the stage for a move towards $6 and a new all-time high.

SUI price action analysis

On the daily chart, SUI's price action shows a bullish breakout from a falling wedge pattern. This breakout triggered the current uptrend, marking a 100% surge from $1.91 to $3.86 between April 7 and May 21.

Currently, SUI is forming higher lows inside a rising channel. This structure emerged after the price bounced off the 23.60% trend-based Fibonacci level at $3.30.

The bullish recovery led to a golden crossover, with the 50-day EMA crossing above the 200-day EMA. Furthermore, there's a positive crossover between the 50- and 100-day EMAs, indicating strong bullish momentum.

Adding to the case for an extended rally, the daily RSI line is showing a hidden bullish divergence, forming a lower low while the price continues to move higher inside the channel.

Overall, the technical indicators suggest that the potential exists for further upside in the SUI price. The 38.20% Fibonacci level, acting as immediate resistance at $4.6335, represents a 20% increase if the trend persists.

With the broader market continuing its recovery, optimistically, the SUI bull run could reach the 50% Fibonacci level at $6.08, setting a new all-time high.

On the downside, if SUI fails to hold support at the lower boundary of the rising channel, a retest of the 50-day EMA around $3.31 is likely.

SUI network expansion drives TVL above $2 billion

To bolster the bullish outlook, the SUI network continues to expand. According to SuiScan, the total value locked (TVL) has surpassed $2 billion, while the total transactions have exceeded $10 billion.

The total number of accounts on the network is nearing 200 million, and the DEX volume is increasing. Notably, the ecosystem liquidity has improved significantly, with the stablecoin market cap reaching $1.15 billion, a 22% rise over the past week.

This network expansion is expected to drive demand for the SUI native token.