SUI Price Prediction: Analyst Targets $7 Amid $1T Stablecoin Surge and Swiss Bank Backing

Since early August, SUI has gained renewed attention from both retail and institutional circles. Its repeated rebound off a long-term trendline has generated investor optimism. As of press time, SUI was trading at approximately 3.38, the third time it has held above key support this year. In the meantime, the ecosystem is gaining momentum in new institutional support and increased DeFi activity. These, together with on-chain positioning, are creating a possible set-up of another rally.

Analyst Predicts $7 Breakout As SUI Retests Historical Support Again

Analyst Lau has made a bullish Sui price forecast of $7, with a good technical structure that can be seen on the weekly chart. In her analysis, SUI has been respecting an ascending trendline on several retests. The initial rebound off this trendline gave a 1058% rally and the second bounce gave 122%. SUI has now bounced back once more off the same diagonal support, and is now trading above the $3.38 mark.

This action is reflective of its historical performance, which augers well in the possibility of another explosive rally should the price continue its historical path. The analyst says that the next major leg up could be confirmed by a clean breakout above the $4.55 level.

The analyst emphasizes that every previous retest of the trendline caused a robust bullish impulse. Besides, the new formation seems to be playing the same script. As long as this rising support holds, Lau sticks to her $7 target based on repeating patterns.

The higher lows and the continued respect of the trendline, shows that buyers are getting more convinced. Thus, the technical evidence is highly in favor of her bullish Sui price forecast in case of continued momentum.

Institutional Backing and On-Chain Metrics Drive Bullish Sentiment

Switzerland-regulated Sygnum Bank has also integrated SUI and now offers custody, staking and trading services to institutional investors. This approval is a significant step in the path of SUI to mainstream financial legitimacy. 

At the same time, DeFi on the Sui Network has exploded, with the volume of stablecoin transfers exceeding the $1 trillion mark. This degree of utility signifies an increasing user activity and liquidity in the ecosystem. The institutional backing for SUI and the all-time high DeFi volume support the long-term positivity of the Sui price.

In spite of bullish activity, the sell pressure has persisted. Spot exchange SUI inflows stands at 174.45 million, just above outflows at 170.32 million. This tight net inflow validates short term selling demand, with more tokens being deposited on exchanges, which is usually a precursor to distribution.

Further, the 90-day Spot Taker CVD continues to be dominated by taker sell volume further confirming the continued bearish pressure. Nonetheless, this negative sentiment seems to be offset by high long interest on Binance, as long/short ratio has jumped to 2.39, according to CoinGlass. More than 70% of traders are gearing up on the upside, which could offset the effect of the recent sell-side action and lead to short-term price strength.

In conclusion, SUI remains technically positioned for upside, with an analyst projecting a $7 target. Despite dominant sell pressure, 70% of traders holding long positions reinforces bullish momentum. This strong positioning raises the chances of SUI breaking higher in the near term.