- A surge in active addresses reflected growing adoption and demand.
- SUI has declined by 23.71% over the past 30 days.
Since hitting a local high of $4.3 three weeks ago, Sui [SUI] has experienced strong downward pressure. In fact, as of this writing, SUI was trading at $3.35 after declining by 0.42% on daily charts.
Equally, the altcoin has dropped on weekly and monthly charts, dipping by 1.14% and 23.71% respectively.
However, despite SUI’s struggles, the altcoin’s fundamentals have been growing.
SUI’s Daily Active Addresses Hits a 3 Months High
Over the past month, SUI has seen daily active addresses surge to hit recent highs. As such, daily active addresses have reached 1.4 million for the first time since November 2024.
Such a strong uptick in active users reflects growing adoption and demand for SUI.
Source: Artemis
This growing adoption is further evidenced by the rising number of new/returning users.
According to Artemis data, SUI has seen daily new wallets serge hitting 1.1 million for the first time in October 2024 where it reached 1.4 million.
Also, the number of returning wallets has remained strong to settle at 346.6k. This shows that SUI is experiencing strong organic demand.
Source: Artemis
Usually, a surge in active users has been viewed as a bullish signal as it suggests higher network activity and engagement.
Historically, a surge in active addresses precedes price appreciation as demand rises. Therefore, can the rising number of users boost SUI to reclaim higher resistance levels?
Can this rising demand boost prices?
According to AMBCrypto’s analysis, SUI is currently seeing buyers reenter the market after a period of dormancy.
Source: Messari
For example, SUI’s buy volume has outpaced sell volume by 2.2 million, with buy volume reaching 8.64 million while sell volume was 6.44 million.
Such a high buy volume suggests that buyers are actively attempting to retake the market from sellers, reflecting strong bullish sentiments.
Source: Coinglass
This bullishness is further evidenced by the rising exchange outflow. As such, Spot netflow has declined to -1.84 million, suggesting there’s more outflow from exchanges than inflow.
When outflow hikes, it suggests that investors are accumulating the asset by keeping SUI away from exchanges to either cold wallets or private storage.
Source: Coinalyze
Finally, SUI’s Funding Rate has sustainably remained positive for the past three days. This suggests that longs are bullish and expect prices to recover, thus they are willing to pay a premium fee to hold their positions.
As such, long positions are in high demand, and prices could rise if spot demand also rises.
Simply put, the rising active addresses are a sign of hope for SUI, which has struggled to keep an upward momentum.
If the rising demand holds, we could see prices recover and reclaim $3.6 thus breaking out of the descending trendline.
A breakout from here will strengthen the altcoin to reclaim $4.0. However, with sellers still in the market, if buyers fail to hold, it could retrace to $3.24 before another leg up.
