Sui Drops 1.7% Weekly Despite 70% Monthly Gain, 21Shares Partnership Boosts Outlook

Sui (SUI) has experienced a slight decline of 1.7% in the past week, following a bullish breakout above the $4 level. Despite this temporary setback, SUI has shown impressive gains of nearly 70% in the past month, driven by growing institutional interest in the Sui ecosystem. This interest was further bolstered by the recent announcement of a partnership with the Switzerland-based asset management firm 21Shares. The collaboration, revealed during the project’s annual Basecamp conference, aims to enhance product collaborations, research reports, and other initiatives.

The partnership with 21Shares is expected to accelerate the growth of Sui’s ecosystem and attract additional capital from institutional investors. This could potentially increase the network’s total value locked (TVL), which typically results in higher demand for SUI and a corresponding boost to its price. Although Sui’s DeFi ecosystem is currently smaller compared to key competitors like Solana, its blockchain is more efficient, capable of processing a higher number of transactions per second (TPS).

The daily chart for SUI indicates that the recent two-day losing streak has resulted in a trend line break, which may signal a strong pullback for this utility token. However, the mid-term outlook remains bullish as SUI has made a ‘golden cross’ – a buy signal triggered when the 21-day exponential moving average (EMA) crosses above the 200-day EMA. This pullback could offer late buyers the chance to enter the rally at a lower price. The Relative Strength Index (RSI) had already entered overbought levels in the past few days, suggesting that buyers were getting a bit out of hand as FOMO kicked in.

This correction could push SUI to its nearest supports – the 21-day and 200-day EMA. If SUI stays above $3.55, it will avoid breaking its bullish structure and confirm that the rally still has enough fuel to rise to a new all-time high. The partnership with 21Shares is expected to further boost SUI’s price, as it could draw additional capital from institutional investors and increase the network’s TVL. This, in turn, could result in higher demand for SUI and a corresponding boost to its price.