SUI Drops 3.05% to $3.88, Analysts Divided on Future

Sui (SUI) is currently at a critical juncture, trading around $3.88 after a recent 3.05% dip, as it faces significant resistance at the $4 mark. This critical level presents a mixed outlook, with technical indicators suggesting caution while fundamental metrics point to a bullish future.

Trader_XO, a prominent analyst, has expressed short-term caution for SUI. He notes that the altcoin faced a strong rejection at the $4.24 resistance, dropping to $3.68. The bearish divergence on the Relative Strength Index (RSI) indicates waning upward momentum. Trader_XO believes that unless SUI can decisively reclaim the $4 level, a deeper correction is likely. Key support levels to monitor are $2.83 and $1.83. He also suggests that if SUI fails to close above $3.92–$4.00, the bearish trend could persist into the second and third quarters of the year. Consequently, Trader_XO has taken a short position near recent highs, anticipating better long opportunities later in the year. However, he acknowledges that reclaiming $4 could swiftly shift market sentiment and ignite broader altcoin strength.

In contrast, analyst Michael Van de Poppe presents a bullish perspective, backed by robust network fundamentals. He observes that SUI has formed higher highs, indicating sustained strength in the macro structure. Notably, the Total Value Locked (TVL) in SUI has surged to $2.06 billion, marking a 70% increase over the past month and nearing an all-time high. This surge reflects strong investor confidence and ecosystem engagement. The network's growth is further fueled by the adoption of tokens like WAL and DEEP. WAL, in particular, has become one of the top-performing assets among the top 85 DePIN protocols, significantly expanding SUI’s ecosystem.

Additionally, analyst Torero Romero highlights that SUI’s total accounts have reached over 190 million, representing a 35.24% increase in just 30 days. This rapid user growth, with more users completing their first transactions, suggests accelerating adoption. Such adoption trends could support future price rallies, adding to the bullish outlook for SUI.