SUI Price Prediction: Technical signals and institutional holdings suggest a potential recovery. Will it rise to $5 next?

The price of SUI Token has recently declined, but it has successfully stabilized around the key support level of 3 dollars, forming a bullish ascending triangle pattern. Despite facing selling pressure from a large-scale token unlock, the SUI ecosystem has recently shown multiple positive signals: including a massive acquisition of 20 million tokens by SUI Group Holdings, a continuous rise in Total Value Locked (TVL) in DeFi, and a new collaboration with TRM Labs. These favorable fundamentals, combined with rebound signals on the technical chart, suggest that SUI is likely to break through the current resistance and may restore to levels of 5 dollars or even higher.

SUI holds the 3 USD support level, aiming for a 5 USD target

The SUI price has successfully held the support level of 3 dollars during the recent downtrend, forming a bullish pattern that suggests a potential recovery to above 5 dollars.

According to data from crypto. news, the SUI Token has fallen by 5% in the past 24 hours. As of the time of writing, the trading price of SUI is $3.34, which has been under pressure for the past few weeks, down about 19.7% from its peak of $4.16 in August.

The token has been in a downtrend as it faces pressure from the large-scale token unlocks on August 1 and September 1, which released approximately 44 million tokens, valued at about 159 million USD and 143 million USD respectively.

The new supply flowing into the market seems to have reduced investor interest, leading to price pressure. According to Coinglass data, since late July, SUI open interest has decreased by 30%, and the funding rate has dropped from 0.0615% in July to 0.0099%.

Corporate Buybacks, DeFi Recovery, Can Multiple Favourable Information Drive a Rebound in Coin Prices?

Despite the pressure of large-scale Token unlocks on SUI prices, some recent developments in its ecosystem may provide the necessary Favourable Information for its potential recovery in the coming weeks.

First, Nasdaq-listed company SUI Group Holdings (formerly Mill City Ventures III) has increased its holdings by approximately 20 million SUI, bringing its total holdings to 101,795,656 coins, valued at about 344 million USD.

As the company continues to accumulate SUI, the circulating supply will decrease, which creates a scarcity of supply and may trigger a rise in the token price.

Another potential factor driving the rise of SUI is its recent continuous growth in the DeFi industry. According to data from DeFiLlama, as of the time of writing, the Total Value Locked (TVL) of DeFi protocols on the SUI blockchain has climbed to $3.5 billion, up from just $3 billion two months ago, an increase of over 16%.

In addition, the SUI team recently collaborated with the blockchain analytics and compliance platform TRM Labs to bring industry-leading risk and compliance tools to the network. This can enhance the security of developers, institutions, and users, and may rekindle investor interest.

SUI Price Analysis

(Source: TradingView)

On the 1-week chart, SUI has been trading in an ascending triangle pattern since the beginning of this year. This structure is defined by a horizontal resistance line and an ascending support trend line, indicating that price pressure is accumulating.

As of the time of writing, the trading price of SUI is close to the lower trend line of 3.10 USD, which is a key support level. A rebound from this area may serve as a springboard for a move towards 4.30 USD, aligning with the upper limit of this pattern.

If it decisively breaks through this level, it will open the way for a rebound to $6.89, which is the predicted target based on the height of this pattern, implying an increase of nearly 106% from the current level.

On the contrary, if the bearish momentum continues, breaking below the lower trend line may trigger a fall towards 2.31 dollars, which is the next important support level.

Conclusion

SUI is currently at a critical turning point. Although the large-scale token unlock has brought short-term pressure, the on-chain data shows institutional accumulation, the healthy growth of the ecosystem, and the bullish patterns on the technical charts, all of which together form a solid foundation for its potential recovery. Whether SUI can successfully break through the upper resistance line of the ascending triangle will determine if it moves towards the projected $6.89 target or falls back due to macro headwinds. For investors, the coming weeks will be crucial, as they will test whether these favourable factors can translate into sustained upward momentum.