SUI has regained some momentum after crashing below its 12-month low. After reaching this level, the trend has changed, and the token is once again establishing a new uptrend, which could be the start of SUI’s new trend.
SUI has been on a downtrend since mid-July, and the token has used the 200-day Moving Average as a support level for some time. However, as the selling pressure was mounting, the 200-day MA could no longer hold the prices. As such, the token crashed from as high as $4.4 and reached $1.5 in a matter of 4 months.
While the token was crashing, the 50-day MA crossed the 200-day MA below it, and a death cross has formed. When a death cross occurs, the price crashes further. SUI, which was already crashing, had a steeper fall.
However, the good news about crashing to its 12-month lows of $1.5 is that one can be assured that the fall has come to an end. The chart below shows two technical indicators, the Relative Strength Index (RSI) and the Moving Convergence and Divergence (MACD) lines, which signal that the downtrend is over.
The RSI line made higher highs and higher lows after the price began to recover, while the MACD line inched closer to the zero line. The histogram in the middle of the MACD indicator is turning green, signaling the growing bullish momentum.
As SUI’s momentum has changed, the token will be looking at hitting the 50-day MA which is at $1.9. Thereafter, the next target will be $2.5 as SUI hunts down its milestone of $4.5.
It’s not just technically that SUI is on the route to regaining momentum, but it is also working on its fundamentals. Using an object-centric architecture, SUI is not only focused on high throughput and low latency; it also provides apps with more modular building blocks.
Just like how object-based programming evolved into complex Web2 applications, Sui has applied the same model to blockchains; therefore, developers can build richer, more scalable on-chain systems.
