Recently, the Sui network saw an unprecedented jump in the number of users, with active accounts increasing by 79% in just 72 hours. With this significant expansion, it made sense for the price to follow the same upward trajectory... but the surprise? The currency has declined!
Millions of new accounts and a leading global position
What happened on the Sui network over the past few days resembles a mini-revolution. The number of daily active accounts rose from about 1.1 million to nearly 2 million users. This growth was not mere coincidence but the result of several factors:
🔸The launch of games and applications that captured public attention, such as Cosmocadia and Warped Universe.
🔸Smart marketing campaigns, notably "Learn and Earn" in collaboration with OKX.
🔸Wide reward programs attracted new users from everywhere.
The numbers don't lie: Sui has surpassed the Tron network, becoming the third most active blockchain in the world. In decentralized finance (DeFi), the total value locked (TVL) has increased by 38%, trading volumes on DEX have surged by 177%, and the supply of stablecoins on the network has grown by 82%.
Despite all this... why is the price dropping?
The main reason for this decline is the sudden release of a massive amount of $SUI tokens, ranging between 76 and 162 million tokens, equivalent to more than $210 million. This means a significant increase in supply, leading to substantial selling pressure.
Additionally, we are witnessing a shift in liquidity towards Bitcoin, amid its increasing dominance in the market, leading to capital withdrawal from altcoins like SUI. This, along with profit-taking by whales after a previous rise, has caused the price to halt below a tough technical resistance level at $3.90.
Technical analysis: between support and resistance
Technical analysis does not bode well in the short term. It has shown that:
🔸Open contracts have decreased by 15%
🔸Funding rates have declined
🔸A large number of long positions have been liquidated
The market is currently watching two critical points: support at $3.50 and resistance at $3.90. Breaking either of these could determine the next direction for the SUI price.
However, this large number of new users represents a strong base for future growth. The biggest challenge now is to retain these users and convert this momentum into long-term loyalty.
Is Sui becoming the star of the next altcoin season?
All indicators suggest that the Sui network is undergoing a pivotal phase. Activity is on the rise, decentralized finance is expanding, and the community is growing rapidly. With selling pressure easing after the unlocking, we may witness a strong price rebound in the coming weeks.
In the world of digital currencies, having a technically successful project is not enough; this success must translate into market trust. If Sui succeeds in this, it could become the major story in the upcoming altcoin season.