Can it achieve $ 4 despite the impending risks?

• SUI has increased by 196 % in the year and has achieved a two -month high of $ 3.71.
• On May 1, SUI tokens worth $ 265 million are released, which brings potential sales pressure.
• Solid defi metrics and liquidity could do SUI towards $ 4.

The SUI price increased by 196 % last year and, according to Coingecko data, has achieved a two-month high of $ 3.71.

This increase collapsed with a breakout from a falling wedge a week ago and the recent outbreak over the resistance zone of $ 3.60, which paved the way for further profits.

Why does the SUI price increase today?

The price increase of SUI was fueled by a mixture of stronger on-chain metrics, a recovery of activities with meme coins and renewed investor optimism.

Last week Sui exceeded a trade volume of over $ 3.6 billion and $ 11 billion a month, while traders flocked to the protocol due to a meme coins, especially in the protocol.

In addition, the blocked total value (tvl) on SUI-based protocols in April increased by 40 % to $ 2.217 billion, which increases the growing trust in its defi ecosystem underline.

It is noteworthy that the breakthrough of SUI has triggered fresh purchase interest over the important resistance zone of around $ 3.60, which drove the prices towards $ 3.71 $

A series of bullish signals about important technical indicators, including a positive MacD and universally bullish sliding average, have reinforced the upward trend.

The relative strength of 78.80, however, signals overbought conditions that could go a short break, but the pulse indicators remain firmly on the buyer.

investors have been attracted to SUI's growing ecosystem metrics, whereby the market capitalization of stablecoins has increased from $ 880 million in the past few weeks.

On the derivative front, the Open interest in sui-Futures rose by 3.75 % to $ 1.54 billion, which reflects the growing institutional engagement.

Long/short relationships near the neutrality on a 24-hour basis and a light bullish tendency among the best bony dealers indicate a balanced but optimistic sentiment.

The youngest two-week rally of over 65 % underlines the accelerated pace of accumulation in both retail and institutional investors.

In addition, the daily volumes of decentralized stock exchanges that move around $ 500 million provided the liquidity foundation for the rally to assert itself.

Analysts find that SUIS market capitalization of $ 12 billion positions it as one of the 15 most valuable Layer 1 blockchains, which attracts significant attention.

265 million $ SUI tokens are released this week

On May 1, about 74 million SUI tokens worth $ 265 million –Was 2.28 % of the circulating offer- released .

Since only a third of the entire token offer is currently in circulation, the fresh influx of token could significantly increase sales pressure.

historical patterns show that large-scale token releases often go hand in hand with short volatility tips before the markets adapt to the underlying growth metrics.

It is noteworthy that large token releases often go hand in hand with temporary declines in the price, as early owners try to make profits.

However, SUI’s robust on-chain basics and deep liquidity indicate that the network can absorb the additional supply without significant declines.

If the buyers maintain control of the level of support of $ 3.60, Sui could take a way to the psychologically important milestone of $ 4.

A seamless absorption of the released tokens could cause the price to fluctuate between $ 3.30 and $ 3.60 before a new upward trend is established.

In contrast, an increase in sales orders SUI back to its original level of support of $ 3.30 or even the 10-day exponential, sliding average line near $ 3.00.

Analysts indicate the increasing total value and the active participation in Defi as an important buffer against distribution -related volatility.

The latest derivative metrics, including a futures volume of $ 6.04 billion, also reflect the deep market liquidity that can help to cushion sudden care disorders.

In addition, the long/short position under retail and institutional accounts remains moderately geared towards longs, which indicates that many investors are prepared for further profits.

The network of network of SUI is further underlined by the daily Dex volumes that compete with many established chains and emphasizes its growing role in the decentralized finance.

Ultimately, Suis's success will depend on the continued demand and trust of the community in the development plan of the protocol.