Sui hits new all-time high of $4.9 as Backpack integration sparks $466 million DEX volume surge

Sui (SUI) price reaches a new all-time high of $4.9 on Thursday after increasing more than 20% the previous week. The main reason behind the rally is Wednesday’s announcement of the Backpack exchange and wallet integration with the SUI blockchain and decentralized exchange (DEX) volume reaching new highs.

Another factor favoring Sui’s bullish outlook is its record-high Total Value Locked (TVL) and Open Interest (OI) levels in the Sui network. The technical outlook suggests a continuation of the rally, pointing to a potential new all-time high of $5.68.

Why is SUI going up today?

Sui price trades higher by almost 10%, reaching a new ATH of $4.9 on Thursday, with its current market capitalization at $14.10 billion, according to CoinGecko.The main reasons for the recent price surge are:

First, the announcement of Backpack exchange and wallet integration with the SUI blockchain on Wednesday. SUI rallied nearly 18% on Wednesday following this news, as this integration by Backpack will create many integration and listing opportunities for projects on Sui while enhancing user experience for both platforms. 

Second, Sui posted on its Twitter handle that its total DEX volume broke the $35 billion mark. It also set a new 24-hour record of more than $466 million for DEX volume, indicating a surge in traders’ interest and liquidity in the SUI’s chain.

Technical outlook: Sui bulls eye for a new high of $5.6

Sui price reached a new high of $4.49 on December 6 after breaking its previous ATH of $3.93 on the previous day. After which, it faced a correction and declined 12% to find support around its 61.80% Fibonacci retracement level at $3.38, drawn from the October 28 low of $1.59 to the December 6 high of $4.49. 

Sui found support, bounced off the $3.38 level on Tuesday, and rallied more than 17% the next day. At the time of writing on Thursday, it extends the gains, reaching a new ATH of $4.9.

If SUI continues the upward trend, it could extend the rally to test $5.68, the 141.40% Fibonacci extension level drawn from the October 28 low of $1.59 to the December 6 high of $4.49.

The Relative Strength Index (RSI) on the daily chart reads 71, and it points upwards after bouncing off its neutral level of 50 on Tuesday, indicating bullish momentum is gaining traction. Moreover, the Moving Average Convergence Divergence (MACD) also supports the upward momentum as it shows a bullish crossover on Wednesday, giving buy signals on the daily chart.

SUI/USDT daily chart

SUI’s on-chain metrics hint at rally continuation

Data from crypto intelligence tracker DefiLlama data shows Sui’s TVL increased from $1.51 billion on December 2 to $1.87 billion on Thursday, the highest level since its launch in launch in May 2023.

This increase in TVL indicates growing activity and interest within the Sui ecosystem. It suggests that more users deposit or utilize assets within SUI-based protocols, adding credence to the bullish outlook.

SUI TVL chart. Source: DefiLlama

Coinglass’s data shows that the futures’ Open Interest (OI) in SUI at exchanges rose from $675.45 million on Wednesday to $897.63 million on Thursday, constantly rising since early November. An increasing OI represents new or additional money entering the market and new buying, hinting at a potential rally ahead in the Sui price.

Sui Open Interest chart. Source: Coinglass