SUI hits six-month peak following USDC integration

Sui saw an impressive price increase on the last day following the integration of native USDC on the platform.

At the time of writing, Sui (SUI) was still up 10% in the past day and was changing hands at $1.2, according to price data from crypto.news. The token has also seen a 35% price increase in the past seven days — from $0.88 on September 11 to a six-month high of $1.22 earlier today.

Following the price surge, SUI’s market cap surpassed $3.2 billion, making it the 30th largest crypto asset with a daily trading volume of approximately $673 million.

One of the key reasons behind SUI’s price surge could be the upcoming integration of its native USDC and Cross-Chain Transfer Protocol, which is expected to increase liquidity and cross-chain transactions.

This upgrade will allow users and developers on the Sui network to expand the use of USDC across a variety of applications, including decentralized finance, gaming, and e-commerce, potentially increasing market demand for SUI.

Another potential driver of the rally could be the Sui Foundation’s announcement of a partnership with MoviePass, a US-based movie subscription service.

Rising futures demand and expanding DeFi ecosystem

The coin’s recovery coincides with rising demand in the futures market, where open interest has reached a new high. Data from CoinGlass shows that open interest has reached $315 million, surpassing the previous record of $290 million and marking a significant increase from the $52 million in August.

Meanwhile, data from DeFi Llama shows that Sui’s network is becoming more popular among developers and users. The total value locked in the decentralized finance sector has increased by more than 25% in the past 30 days to over $741 million. Most of these assets are held in NAVI Protocol, Scallop Lend, Suilend, and Aftermath Finance.

SUI’s momentum faces major resistance test

Sui broke above both the 50-day and 200-day Simple Moving Averages on the daily chart and developed an inverse head and shoulders formation, which is generally considered a bullish indicator.

SU price, 20-day SMA and 200-day SMA } Source: crypto.news

SUI is also positioned above the upper Bollinger Band at $1.1948, which suggests strong bullish momentum. However, this also suggests that the asset is overbought, which could signal a possible pullback or price correction.

SUI Bollinger Bands and RSI } Source: crypto.news

Despite being overbought, prolonged market excitement can sometimes keep an asset in this position for extended periods. The main resistance level is currently at $1.40, which the SUI approached during its rally on April 20. If the momentum continues, a push back to these levels is likely.

The Relative Strength Index is slightly higher at 72.52, just above the overbought threshold of 70, signaling that the asset could soon experience downward pressure as traders potentially begin taking profits.

If the price declines, the middle Bollinger Band at $0.9325 will act as immediate support and if there are any further declines, the lower support at $0.6702 could be challenged.