- Sui’s bullish momentum weakens on Monday, reflecting potential profit-taking after a rally to $4.30.
- Digital asset inflows into Sui products reached $9.3 million last week, driven by renewed sentiment in the broader cryptocurrency market.
- Sui’s DeFi TVL remains above $2 billion, signaling growing investor confidence in the layer-1 protocol.
The price of Sui (SUI) faces headwinds around $3.71 on Monday, following a slightly bullish Sunday. The layer-1 blockchain’s token has been, since the sentiment-driven rally to $4.30 on May 12, confined below $4.00 despite consistency in digital asset inflows, which reached $9.3 million last week.
Sui struggles to maintain uptrend despite consistent fund inflows
Sentiment around Sui remained elevated last week, with inflows of digital funds into the ecosystem’s financial products reaching $9.3 million. Sui boasts $332 million in Assets Under Management (AUM), trailing behind Ripple (XRP)’s $1.42 billion and Solana’s $1.6 billion.
Digital asset investment products recorded a total of $785 million, marking the fifth consecutive week of inflows, with Bitcoin (BTC) accounting for the largest share at approximately $557 million.
Ethereum (ETH) stood out as the top performer, with over $205 million in inflows, driven by renewed investor optimism surrounding the Pectra upgrade.
Sui’s fund inflows stabilized, reflecting the renewed sentiment in the protocol’s Decentralized Finance (DeFi) TVL, which remains slightly above $2 billion, according to data from DefiLlama.
The TVL is the sum of the value of all coins held in smart contracts of all protocols on the chain. The chart below highlights the steady increase in TVL since around $1.78 billion on May 1.
A rising TVL is a bullish indicator, reflecting increased confidence and renewed interest in the protocol. Investors lock assets in smart contracts when they are confident in the long-term value of the network and anticipate substantial price growth.
Meanwhile, the market capitalization of Sui’s stablecoin surged 23.5% last week, reaching $1.09 billion, with USDC leading as the primary asset. This growth is reflected in an astounding 10.47% increase in decentralized exchange (DEXs) volume, reaching $4.14 billion weekly.
Looking ahead: How far can Sui’s pullback go?
Sui’s price is down over 6% on the day to $3.71 at the time of writing. Intraday declines reached $3.59 on Monday, reflecting broader swings between support and resistance in the cryptocurrency market.
The Relative Strength Index (RSI) has been on a pronounced downward trend, approaching the midline of 50 after reaching overbought levels at 75.53 on May 8. This steady decline aligns with Sui’s pullback from its peak of $4.30, suggesting that sellers still have a short-term advantage.
Beyond the immediate support at $3.50 previously tested in late April and February, key levels to monitor lie at the descending trendline, as illustrated on the daily chart, the demand area at $3.26 near the 50-day Exponential Moving Average (EMA), and the 200-day EMA around $2.96.
Although the short-term trend appears bearish, Sui remains well above the 50-day EMA at $3.26, the 100-day EMA at $3.12, and the 200-day EMA at $2.96. The upward trajectory of these moving averages indicates that buyers maintain control over sellers, suggesting caution against overly bearish outlooks.
