Sui Trading Volumes Surge Past $1B as Market Activity Intensifies
Sui’s trading volumes rose above one billion dollars in the last twenty-four hours, which means that the market is more active and investors are more careful. Price action showing a lot of bearish signals has caught traders’ attention, which could mean that there are risks of prices going down soon.
Volume spikes of this size usually show that ongoing technical changes are important. Traders keep a close eye on these levels because big moves in one direction often happen after these levels are reached, either confirming breakouts or speeding up declines when combined with bearish setups.
Stablecoin Reserves Plummet Signaling Declining Network Confidence
On-chain data shows that Sui’s stablecoin reserves have dropped sharply, from $1.2 billion to $550 million in just seventy-five days. This big drop shows that investors are losing faith and that money is moving to other blockchain ecosystems that are offering better opportunities lately.
This downward trend is especially worrying because it happens during a broader altcoin season when other networks, like Solana and XRP, are getting more attention from institutions. This kind of difference suggests that traders are moving their resources around in a smart way, which makes Sui more vulnerable in the current competitive market.
SUI Breaks Below Long-Term Trend Line Signaling Growing Bearish Pressure
Sui’s daily chart shows a clear bearish breakout below its long-term trend line support. This is an important technical event that could mean more downside. The token also fell below the 200-day exponential moving average, which confirmed that momentum was weakening and bearish pressure was growing.
The Relative Strength Index fell below its midline and crossed below the 14-day moving average, which means that momentum indicators are now negative. All of these signals point to a weakening of bullish strength and a rise in seller dominance over short-term trading time frames.
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Price Targets Suggest Potential Decline Toward $2.70 Support Zone
If bearish momentum keeps going, analysts think prices will keep going down, first aiming for the psychological level of $3.00 and then possibly reaching support at $2.70. Price is currently testing broken trend line levels from below. This is something that often happens before prices start to fall again when there isn’t enough buying interest.
Traders keep a close eye on the $3.25 resistance level to see if the bulls can take back control. Not being able to defend these levels will likely increase selling pressure, confirming predictions that prices will keep going down toward lower technical targets in the coming sessions.
Total Value Locked Shows Mixed Signals Despite Bearish Price Action
It’s interesting that Sui’s total value locked in SUI tokens has gone back up to its yearly high of about six hundred forty million. This means that people are still participating in the ecosystem even though the hype is dying down and money is leaving, as shown by stablecoin metrics.
Getting rid of price effects shows that token deposits are growing in decentralized apps. This difference shows that some investors are still backing ecosystem development. If the overall mood improves significantly later, this could set the stage for future price recoveries.
Investor Interest Drops as Other Chains Compete More Strongly
Sui is facing more competition from other networks that offer better yields and features, like Ethereum’s upgraded ecosystem after Pectra and Solana’s growing institutional integrations. This competitive environment is a big reason why stablecoin reserves are going down and investors are less interested.
Stalled plans for exchange-traded funds have made things even slower. If Sui can’t bring back excitement through new products or better incentives, it could become harder to keep investors loyal as the industry changes and capital allocation strategies change.
Sui Strengthens Infrastructure to Boost Credibility and Fight Scams
Sui started a ten-million-dollar Security Expansion project to make decentralized applications safer so that they can better fight scams and impersonation attempts. Strengthening security infrastructure improves the long-term credibility of the network, which helps to address important issues that are holding back wider adoption efforts.
But these steps may not lead to a quick rise in prices. To turn around bearish trends and bring in a lot of capital, Sui needs to combine security improvements with strong economic incentives and ecosystem growth strategies that can compete in a crowded blockchain market.
