SUI showed a remarkable performance on Friday amid the market retrace. Following Bitcoin’s drop to the $55,000 mark, the cryptocurrency was among the few tokens showing green numbers with an 8% surge. The token’s performance, alongside the network’s developments, has fueled a bullish sentiment among investors. However, some analysts remain cautious of the cryptocurrency, warning that the joy could be short-lived.
SUI was among the best performers throughout August, registering 50% surges amid the market downturns. The cryptocurrency’s resilience last month was fueled by several factors, including network updates, large over-the-counter (OTC) bids, and “strong holdership through big unlocks.” Moreover, Grayscale launched its investment trust, Grayscale SUI Trust, based on the cryptocurrency. As a result, the token’s bullish momentum propelled the price toward key levels not seen since mid-June.
Throughout August, the token retested the $1 resistance level several times, ultimately failing to reclaim it as a support level. The token surged 8% on Friday morning after reclaiming support at the $0.8 level. SUI is currently the largest gainer among the top 100 cryptocurrencies, displaying jumps in various timeframes.
Analysts like Alex Clay and Yuriy believe SUI could target higher resistance levels if it consolidates above current support zones. Clay sees potential mid and long-term targets of $3.3 and $5, while Yuriy points out a bullish flag formation. However, failure to hold key support zones could lead to a price drop.
Altcoin Sherpa suggested caution, noting that the upcoming token unlock in October might halt the bullish momentum. Despite the recent performance, the token may not be a long-term hold.
