The price of Sui continues to hover below $3. We examine how the recent partnership with World Liberty Financial may impact its future.
Current Sui Price Situation
Currently trading at $2.75, Sui's relative strength index is at 42.39, placing it in the bearish territory without being oversold. Both the 50-day and 200-day moving averages support a bearish trend. If selling pressure increases, support levels are expected around $2.70 and $2.50, with resistance at $3.57.
Analysis of Sui's DeFi Ecosystem
Sui's DeFi ecosystem shows mixed signals, with the total value locked dropping from $2.05 billion in January to $1.25 billion. The market cap of stablecoins has increased from $378 million to $648 million, indicating improved liquidity. However, decentralized exchange trading volumes have fallen from $12 billion in January to $7 billion in February.
Partnership with World Liberty Financial and Market Impact
On March 6, Sui announced its partnership with the DeFi protocol World Liberty Financial, planning to explore product development and include SUI in WLFI's strategic token reserve. Initially, SUI surged by 18% on the announcement but later cooled off. Arkham Intelligence data reveal that WLFI held no significant SUI before the announcement, casting doubt on the immediate impact but sparking speculation about future acquisitions. Despite institutional interest, such as VanEck's SUI-backed product launch, sustained buying pressure has not materialized.
Sui remains in a bearish cycle despite recent partnerships and institutional interest. Long-term stability depends on consumer interest and DeFi sector activity.
