- SUI is nearing a key $4.18 resistance with strong bullish momentum backed by a 222% surge in TVL and rising trader interest.
- A confirmed breakout could trigger a major rally, supported by short liquidations, positive funding, and bullish technical indicators.
Sui [SUI] is testing critical resistance near $4.18, with bullish momentum and strong on-chain fundamentals pushing for a decisive breakout. The native token has surged over 6% in the past 24 hours to trade at $4.08, just shy of its key resistance level. With the price action forming a textbook cup-and-handle pattern, the setup suggests that a bullish continuation could be imminent—if the neckline breaks with volume support.
On May 22, SUI reached a major on-chain milestone with its Total Value Locked (TVL) hitting an all-time high of $2.2 billion. This marks a staggering 222% increase year-over-year, signaling rising investor confidence and the rapid growth of SUI-based DeFi protocols. The robust fundamentals underscore the sustainability of the current rally.
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In the derivatives market, enthusiasm is equally evident. Open Interest (OI) has jumped by 31.3% to $1.76 billion, a clear indication of fresh capital entering the space. Meanwhile, the Volume-Weighted Funding Rate turned positive at 0.011%, confirming bullish dominance as traders pay a premium to go long.
The price zone around $4.18 remains the critical barrier. It aligns with the neckline of the developing cup-and-handle formation. A confirmed breakout above this level—ideally with strong volume—could propel SUI into a fresh price discovery phase. If rejected, the handle pattern may extend, delaying the breakout.
However, market dynamics favor the bulls. Short liquidations worth $1.64 million over the past session show that bears are exiting en masse, further fueling upward momentum. In contrast, long liquidations remain minimal at $84.72K, reflecting strong conviction among buyers.
Technical indicators bolster the bullish case. The MACD is nearing a bullish crossover, while the RSI stands at 67.42—suggesting strong buying interest without yet being overbought.
With fundamentals, technicals, and derivatives all aligning, SUI appears primed for a breakout. If bulls flip $4.18 into support, the stage will be set for an extended rally and potential entry into uncharted price territory.
