SUI's Active Addresses Surge Amidst Price Decline

Sui (SUI), the native token of the Sui blockchain, has been experiencing a surge in active addresses, with daily active users reaching a three-month high of 1.4 million. This increase in adoption and demand has been accompanied by a decline in SUI's price, which has dropped by 23.71% over the past 30 days. Despite the price decline, SUI's fundamentals have been growing, with a significant uptick in active users and a rise in the number of new and returning wallets.

The surge in active addresses is a bullish signal, suggesting higher network activity and engagement. Historically, a surge in active addresses has preceded price appreciation as demand rises. However, SUI's price has been under strong downward pressure, declining from a local high of $4.3 three weeks ago to its current price of $3.35. The altcoin has also dropped on weekly and monthly charts, dipping by 1.14% and 23.71% respectively.

Despite the price decline, there are signs of growing demand for SUI. According to AMBCrypto's analysis, buyers have been reentering the market after a period of dormancy. SUI's buy volume has outpaced sell volume by 2.2 million, with buy volume reaching 8.64 million while sell volume was 6.44 million. This high buy volume suggests that buyers are actively attempting to retake the market from sellers, reflecting strong bullish sentiments.

Furthermore, the rising exchange outflow indicates that investors are accumulating the asset by keeping SUI away from exchanges to either cold wallets or private storage. The Spot netflow has declined to -1.84 million, suggesting there's more outflow from exchanges than inflow. Additionally, SUI's Funding Rate has sustainably remained positive for the past three days, suggesting that longs are bullish and expect prices to recover, thus they are willing to pay a premium fee to hold their positions.

The rising active addresses are a sign of hope for SUI, which has struggled to keep an upward momentum. If the rising demand holds, we could see prices recover and reclaim $3.6, thus breaking out of the descending trendline. A breakout from here will strengthen the altcoin to reclaim $4.0. However, with sellers still in the market, if buyers fail to hold, it could ret