Sui Price Struggles Below $3 Despite WLFI Partnership: What Lies Ahead?
Despite a recent partnership with Trump’s World Liberty Financial, Sui’s price continues to trade below the $3 mark, facing challenges in gaining momentum. Currently priced at $2.75, the cryptocurrency is showing signs of weak momentum as indicated by a relative strength index of 42.39, placing it in bearish territory.
Technical indicators such as the 50-day EMA at $3.35 and the 200-day EMA at $3.02 suggest a bearish trend for Sui. In case of increased selling pressure, support levels can be expected around $2.70 and $2.50, while resistance lies at $3.57.
Despite the price struggles, there has been a 10% increase in open interest over the past 24 hours, indicating rising trader activity. However, a sustainable recovery for Sui would require increased demand and stronger decentralized finance activity. The partnership with World Liberty Financial could potentially boost momentum for Sui, but its long-term impact remains to be seen.
Analysis of Sui’s DeFi ecosystem shows mixed signals, with a decline in total value locked from $2.05 billion to $1.25 billion, while stablecoin market capitalization has increased from $378 million to $648 million. Trading activity on decentralized exchanges has also decreased from $12 billion to $7 billion between January and February.
With the recent partnership announcement with WLFI, a Trump-backed DeFi protocol, Sui experienced an initial surge of 18%. However, questions arise about the immediate impact as data shows WLFI had no significant SUI holdings prior to the partnership. Speculation remains on whether WLFI will start acquiring Sui in the near future.
Institutional interest in Sui has grown, with VanEck launching the first SUI-backed exchange-traded product last year. Despite this, sustained buying pressure is yet to materialize. With a market cap of $8.6 billion, Sui competes with major players like Ethereum and Solana, offering transaction speeds of up to 297,000 TPS.