After reaching a recent peak of $4.21 on May 12, Sui (SUI) has cooled off slightly, now trading around $3.84. Technical indicators suggest weakening short-term momentum, though the broader outlook for the Layer-1 blockchain remains optimistic.
Despite the price dip, SUI has delivered impressive performance over the past few weeks, doubling in value during its latest rally. However, signs of fatigue have emerged. According to Coinglass, 24-hour trading volume has declined by 30.5% to $1.13 billion, while derivatives activity is down 31.2% to $3.07 billion. Open interest also slipped 1.8% to $1.8 billion—indicating reduced speculative appetite.
New Partnership with 21Shares Signals Institutional Interest
In a potentially bullish development, Sui announced a partnership with 21Shares on May 14. The crypto exchange-traded product (ETP) issuer is known for bringing digital asset exposure to institutional investors. The collaboration aims to expand SUI's global visibility and adoption, with a particular focus on the U.S. market—where regulatory improvements are opening doors for institutional involvement.
> “Partnering with Sui speaks to where we see the future of blockchain infrastructure heading,” said Federico Brokate, Head of U.S. Business at 21Shares. He emphasized Sui’s strengths in speed, scalability, and DeFi innovation.
Strong Fundamentals: TVL and DeFi Ecosystem on the Rise
Backing up the bullish sentiment is the rapid growth of Sui’s decentralized finance (DeFi) landscape. According to DeFiLlama, Sui’s total value locked (TVL) has climbed to $2.06 billion, ranking it eighth among all blockchains. The 70% increase in TVL over the past month suggests growing developer activity and user adoption.
Technical Picture: Short-Term Cooling, Long-Term Strength
On the technical side, SUI is consolidating just below resistance at $3.92. The Relative Strength Index (RSI) stands at a healthy 63—above neutral, but showing signs of leveling off. The MACD has turned bearish with a developing negative crossover, a potential early warning of slowing momentum.
Short-term indicators like the Stochastic RSI are neutral to bearish, while the Bollinger Bands are narrowing, suggesting reduced volatility in the near term. Still, all major moving averages (10-day through 200-day) remain in bullish alignment, supporting a positive long-term trend.
If SUI holds the key support zone between $3.66–$3.80, a new leg up could be in play—especially if the 21Shares partnership enhances investor confidence and draws institutional capital into the ecosystem.
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Bottom Line:
Sui’s recent cooldown may be a healthy pause following a powerful rally. With strong on-chain fundamentals, continued DeFi growth, and the boost from 21Shares’ institutional reach, SUI could be gearing up for its next move—possibly toward a new all-time high.
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