Sui (SUI) Price Soared 21% to Hit $3.885 Targeting 60% Upside Potential

The price of Sui (SUI) surged 21% on May 8, with Bitcoin price today hitting $104k sparking a broader cryptocurrency rally into new highs.

As Meta is now restarting its stablecoin endeavors after shutting down Diem in 2022, the spotlight is back on Sui with technical indicators signaling a 60% rally from here.

This double-digit SUI price prediction is supported by the token’s network expansion and a surge in Open Interest.

After closing the gates on the Diem project in 2022, Meta is now planning to get back into the stablecoin segment, but is it too late now?

Under the leadership of Ginger Baker, Meta’s new VP of Product, who joined the company in 2023 from Github, early discussions on how to use stablecoins for global creators and businesses to get paid are back on the agenda.

The company might be planning to integrate stablecoins on platforms like Instagram as a flexible option for low-cost, cross-border payments.

However, there are no immediate plans to launch a new cryptocurrency, despite earlier reports. Moreover, Baker is currently focused on Web3 strategy, and it remains unclear how this will factor into the broader narrative.

Now, why is this relevant to Sui and its price analysis?

Well, it’s no secret that the top engineers from Diem later went on to found Sui and Aptos. Connecting the dots, there’s a unique technological lineage that links Sui to Meta, a factor that could be stirring some sentiment into the SUI price rally.

SUI Price Breakout Aims To Surpass $6

Technical analysis on the SUI price shows that the token is bullishly placed for more gains.

The SUI price action displayed a 86% rally between $2.08 and $3.87 in April, and then it engaged in a 1-week consolidation phase to test the $3.18 support.

This price action is known as a bull flag, with the 86% rally being termed as the flag pole and the consolidation as the flag. This technical formation is a bullish one and forecasts a continuation of the prior trend.

The bull flag target for SUI price is obtained by adding the pole’s height of 86% to the breakout point of $3.36. This shows that the theoretical target for the token is $6.26. Based on this, SUI price is expected to witness a 60% upside from the current market price.

Relative Strength Index at 65.82 signals a gradual growth in the underlying bullishness. Additionally, the Chaikin Money Flow index at 0.18 shows positive flows fueling the SUI leap. Hence, the technical signals and price analysis possibility of the token hitting a new all-time high.

As per the trend-based Fibonacci levels, the SUI price hit the 38.20% level at $4.01 before witnessing a 5% pullback from here.

However, the pattern breakout strengthens the SUI price prediction to cross the 100% level. Such a scenario will put the 161.8% Fibonacci level at $8.46 on bullish radars.

On the flip side, the present price movements signal strong support at $3.67 and $3.18. If the SUI price fails to hold $3.18, the bull flag will be nullified, risking a $2.78 retest.

Sui Network Expansion Hits Record High Transactions

With the market price surge, the Sui ecosystem expansion is also gaining momentum.

According to data from SuiScan, transactions over Sui have crossed the 10 billion milestone, which bodes well for increasing adoption of the token.

Additionally, DeFiLlama shows the Sui Total Value Locked (TVL) at $1.76 billion is getting closer to its record high of $2.08 billion.

Open Interest Hits New Record High at $1.86 Billion

As the fundamentals strengthen and technicals are bullish, traders are piling into SUI derivatives in anticipation of a sustained uptrend.

According to Coinglass, the Sui Open Interest (OI) hit a new record high of $1.86 billion today, showcasing a 30% surge from the previous day. This signals increased trading activity and a heightened possibility of a leverage-driven pump in market prices.

However, the OI weighted funding rates fail to reflect this dramatic surge in OI and remain almost stagnant at 0.0074%. This suggests that, despite the rapid price action and optimistic market sentiment, aggressive funding to propel even steeper rallies has yet to enter the space in full force.