he cryptocurrency space has been captivated by SUI's astounding price appreciation, as the altcoin's price increased over 130% in September 2024 to exceed the $1.70 price point. This positive price action in September marks a return to prices that have not been seen since April of 2024.
SUI's surge is compounded by an increase in social volume of user engagement and trading volume, showing strong interest in the altcoin from investors. However, while the market monitors the trajectory of SUI's price action, it poses the question of how sustainable this price momentum is, and whether a market correction may be on the horizon.
Rising Social Volume & Market Implication
SUI's recent surge in price is directly correlated to an increase in social engagement. After mid-September, the price of SUI, along with its social volume, began to gradually increase until September 25, 2024 - when social volume peaked at 197 individual interactions, the all-time high for SUI according to Santiment.
Although social volume retreated to 121 towards the end of the trading day, this upward trend illustrates a significant amount of attention that SUI has garnered in the market. This increased attention likely correlates to SUI's price increase, as investor sentiment has been known to impact price action and overall market dynamics.
Bullish Indicators and Overbought Signals Underpin SUI Price
SUI's price surge is supported by technical indicators suggesting bullish price action. On September 24, 2024, the altcoin experienced a remarkable boost in its price by roughly 13.5%, climbing to approximately $1.70. After some instability, SUI has remained around this level with a 4% gain.
Moving averages are close to forming a golden cross, a bullish indication that often signifies more upward action to come. However, the Relative Strength Index (RSI) is 75, placing SUI in overbought territory; this scenario is conducive to a short-term correction as the market takes some profit from the rapid price increase.
TVL and Trading Volume Spike
The positive price trend has also generated a tangible effect on SUI's Total Value Locked (TVL) and trading volume. According to DefiLlama, SUI's TVL has surpassed $950 million and is currently at an all-time high for the network. This increase in TVL signifies an increase in capital inflow and investor confidence.
At the same time, there’s been a significant increase in trading volume, peaking at nearly $119 million, establishing the highest volume in recent months. As of the most recent trading, trading volume is still strong, at over $89 million, which indicates continued investment activity and interest.
