Sui Faces Challenges Despite Trump-Backed Partnership
Sui (SUI) is currently trading below $3,with a price of $2.75. The asset is struggling to gain momentum, despite a recent partnership with Trump’s World Liberty Financial (WLFI). The relative strength index of 42.39 suggests the asset is not oversold but remains in a bearish trend.
Technical indicators show a bearish trend. The 50-day EMA at $3.35 and the 200-day EMA at $3.02 signal a bearish market. support levels are around $2.70 and $2.50, while resistance is at $3.57. A move above $3 could improve momentum, but a sustained recovery needs increased demand and stronger DeFi activity.
Open interest has risen by 10% in the past 24 hours, according to Coinglass data.However, the total value locked in Sui’s DeFi ecosystem has dropped from $2.05 billion to $1.25 billion. The market cap of stablecoins has increased from $378 million to $648 million, indicating greater liquidity.
Despite the partnership with WLFI, SUI’s price has not seen a significant boost. The partnership aims to explore product advancement and add SUI to WLFI’s strategic token reserve. However,WLFI had no SUI holdings before the declaration,raising doubts about its immediate impact.
Institutional interest in Sui has grown, with VanEck launching the first SUI-backed exchange-traded product. Sui competes with ethereum and Solana,boasting a market cap of $8.6 billion and transaction speeds of up to 297,000 TPS.The monthly decentralized exchange volume has decreased from $12 billion to $7 billion, indicating a decrease in trading activity.The 50-day EMA at $3.35 and the 200-day EMA at $3.02 confirm this trend. If selling pressure increases, support is around $2.70 and $2.50.
Arkham Intelligence data shows WLFI had no meaningful SUI holdings before the partnership announcement. This casts doubt on the immediate impact, but traders speculate WLFI will soon start acquiring SUI.
Sui’s DeFi ecosystem shows mixed signals. Total value locked has dropped, but stablecoin market cap has climbed. Monthly decentralized exchange volume has also decreased.
Despite these challenges, Sui continues to compete with Ethereum and solana. The partnership with WLFI and the launch of the first SUI-backed exchange-traded product by VanEck provide hope for the future.
