Sui (SUI) increased by about 6% at the time of writing this article on Friday, in line with the recovery of the global cryptocurrency market. The bullish momentum followed after Bitwise officially submitted an application to the U.S. Securities and Exchange Commission (SEC) on Thursday, proposing the listing of a spot ETF focused on SUI. In this context, demand from individual investors for Sui is significantly increasing, reflected in the opening of new positions and the spread of optimistic sentiment in the derivatives market.
Retail demand surged as the market recovered, expecting Bitwise's ETF.
The 'risk-on' sentiment in the cryptocurrency market has shown significant signs of recovery after the U.S. CPI index for November reached only 2.7%, considerably lower than the forecasted 3.1%. This development reinforces expectations that the U.S. Federal Reserve (Fed) may begin a rate-cutting cycle next year, as inflation continues to approach the central bank's target of 2%.
On another note, Bitwise – the global cryptocurrency asset management company – has officially filed an S-1 application with the SEC to seek the listing of a spot SUI ETF. This move comes right after Grayscale filed an application to convert its SUI-focused trust into an ETF. If approved, spot ETFs of SUI are likely to pave the way for institutional capital inflow, significantly supporting asset prices.
In this context, data from CoinGlass shows that risk participation in the SUI derivatives market is increasing. The total open interest (OI) has reached $669.47 million, up 3% within just 24 hours, reflecting traders opening new positions with the expectation that the recovery trend will continue.
Notably, the funding rate currently stands at 0.0030%, indicating that optimistic sentiment still prevails during the accumulation and position-building process in the market.
The recovery of Sui may encounter some minor obstacles.
Sui has recorded a notable recovery from the support zone of $1.30 — a critical price point that has been maintained since the end of November. This reversal, after a prolonged adjustment from last week, opens up the possibility of forming a new upward phase within a broader accumulation range, with the upper resistance area focusing around $1.73–$1.76.
However, the short-term trend still faces several challenges as the 50 and 200 EMA lines on the 4-hour chart continue to trend downward, currently sitting at $1.49 and $1.64, respectively. These are likely to be strong resistance levels during the recovery process.
On a positive note, momentum indicators are clearly signaling improvement. Selling pressure shows signs of weakening as the RSI on the 4-hour chart rises to 46 and gradually approaches the neutral zone, after bouncing back from the oversold area at the end of last week. Meanwhile, the MACD line has crossed above the signal line, reflecting a positive shift in short-term price momentum.
However, the negative scenario still needs to be considered. In the event that Sui loses the support zone at $1.30, the current sideways structure will be broken, opening up the risk of prices continuing to decline towards the important psychological support level around $1.00.