Sui Price News: SUI Jumps by 20% As NY Citizens Can Now Buy Via Coinbase

Sui (SUI) has gone up by 20% in the past 24 hours and currently sits at $1.60 in what could be one of this year’s most dramatic bear traps.

Yesterday, the week started with a sharp drop across the entire market following news that the Bank of Japan was preparing to cut rates in December.

However, today the market has shifted gears and is now taking a big U-turn as the price of most crypto assets is bouncing back.

Sui’s Official X Account – Source: X.com

That said, SUI is outpacing most other tokens with some big gains after Coinbase received the nod from the state of New York to offer this token to its citizens.

Although approval in a single state may not sound like much, we are talking about the world’s financial capital. Getting approved to access a specific token implies that residents and companies can now freely buy the token through the largest crypto exchange in the country.

This means that higher volumes are coming to Sui, and buying interest seems to be there, as reflected by today’s strong uptick. New York citizens will now be able to buy SUI via the exchange’s website or mobile app.

Sui Network Experiences Big Drop in Stablecoin Balances

As a result of today’s uptick, $350 million worth of short positions have been flushed out of the market as market volatility persists, on both sides. Sui is currently ranked in 10th place on today’s short liquidations chart – a rare appearance that reflects the extent to which traders were caught off guard by this move.

Market conditions have been improving lately as analysts are once again sure that the Federal Reserve will cut interest rates in December. Data from FedWatch indicates that 90% of economists surveyed believe that the U.S. central bank will lower its benchmark rate by 25 basis points during the next FOMC meeting.

This is a radical change compared to the 40% odds we saw in late October after Chairman Jerome Powell questioned the rate cut.

Stablecoin Reserves on Sui – Source: DeFi Llama

That said, Sui’s ecosystem has felt the sting of this latest wave of negative momentum as stablecoin reserves on this network dropped sharply from a recent peak of $1.2 billion to $700 million at the time of writing.

Paired with a 15% drop in the blockchain’s total value locked (TVL), measured in SUI, it means that some of that money has actually gone out the window lately. Meanwhile, in dollar terms, Sui’s TVL currently sits at $1 billion, still way behind its top competitors, BNB Chain and Solana, despite its allegedly more efficient architecture.

SUI Jumps Off $1.3 and Seems Heading to $1.8 Next

Thus far, the price action has unfolded as we outlined in our latest Sui price prediction. Based on what has happened recently, we expect that the price will eventually collapse to $1.

This big bounce was expected at some point, as one can’t expect a drop from $1.7 to $1 to occur without some resistance down the road.

SUI/USD Daily Chart (Coinbase) – Source: TradingView

The key support for SUI right now was the $1.30 area. Now the token could jump back to retest a former support at $1.78. This area will now be in confluence with the 200-day exponential moving average, which increases its technical relevance.

If we get a big rejection from this level, it is highly likely that the price will resume its downtrend and keep plummeting to the $1 level. Short sellers would have the upper hand if they patiently expect this scenario to unfold and sell at around $1.8, once the rejection is confirmed.

That said, if we get a move to $2, that would invalidate this bearish outlook and could mean that Sui is ready to leave this bear market behind and recover some of the territory it has lost in the past couple of months.