Despite a staggering 40% surge in Total Value Locked (TVL) and a major $450 million institutional investment, the SUI token has dropped 4.5% in the last 24 hours. What’s behind this paradox? Let’s dive into the details.
SUI Token Price Drop: What’s Happening?
The SUI token is currently trading at $3.79, down 4.5% over the past day. This decline comes despite the Sui blockchain network hitting a record TVL of $2.28 billion, a 40% increase since the start of the year. Key factors influencing this drop include:
- Short-term profit-taking by traders
- Failed breakout attempt above the $4.40 resistance level
- Neutral RSI at 53, indicating a lack of strong momentum
TVL Surge: A Sign of Strong Fundamentals
The Sui network’s TVL has rebounded sharply from its March low of $1.02 billion to $2.28 billion. This growth is driven by:
- Increased developer activity
- Growing user participation in DeFi projects
- Major institutional interest, including a $450 million private placement
Institutional Investment: A Game-Changer for SUI?
Mill City Ventures III has allocated nearly 98% of a $450 million private placement to SUI, marking one of the largest institutional investments in the token. Additionally, two ETF issuers, Canary Capital and 21Shares, have filed applications to launch SUI-tracking funds, now under SEC review.
Technical Analysis: Is the Bullish Trend Intact?
From a technical standpoint, SUI remains above key EMAs, including the 20-day EMA of $3.77, suggesting the long-term bullish trend is still valid. However, the token faces immediate resistance at $4.40, a level it has struggled to break.
What’s Next for SUI?
While the price pullback may concern short-term traders, the strong underlying fundamentals—record TVL, institutional backing, and ETF applications—point to long-term growth potential. Investors should watch for:
- A breakout above $4.40 resistance
- Further institutional developments
- SEC decisions on SUI ETFs
FAQs
Why did the SUI token drop despite a TVL surge?
The price drop is likely due to short-term profit-taking and a failed breakout attempt above $4.40. The TVL surge reflects long-term growth, which may not immediately impact price.
What is the significance of the $450 million institutional investment?
This investment signals strong institutional confidence in SUI’s long-term potential, potentially driving future price appreciation.
Are SUI ETFs likely to be approved?
While the applications are under SEC review, approval would further legitimize SUI and attract more institutional investors.
What are the key resistance levels for SUI?
The immediate resistance is at $4.40, with further upside potential if this level is breached.
