Sui (SUI) Price Prediction: 20% Hike Likely as Daily Transaction Volume Skyrockets

Sui (SUI), a Layer-1 blockchain, has recently experienced substantial growth, particularly in daily transaction volume.

Sui (SUI), a Layer-1 blockchain, has recently seen impressive growth, especially in daily transaction volume. This activity has also led to a 10% increase in SUI's price over the last 24 hours.

As network activity picks up steam, can we expect SUI's price to rally significantly? This analysis examines the key factors behind Sui's transaction boom and how this development could fuel a breakout in the coming days.

Stablecoin Meme Coins Aid Sui

On October 2, the daily transaction count on Sui was 4.8 million. One day later, the transaction count shot up to nearly 9 million, showing a significant 85% increase within 24 hours and has maintained that threshold since then.

This surge in transactions suggests a substantial increase in interaction with the blockchain and rising demand for the SUI token. According to BeInCrypto's investigation, the hike could be linked to the launch of the Circle (USDC) stablecoin on Sui some weeks ago.

Moreover, the growth of meme coins on the network has also played a role in the market. For example, sudeng (HIPPO), the meme coin with the highest market cap on the network, has seen its price increase by 165% in the last seven days, while another one — aaa cat (AAA, jumped by 370%.

This surge in transactions could also serve as evidence that Sui might be a clear Solana competitor, as we previously analyzed.

Amid these developments, Sui's Open Interest (OI) has also risen. At the time of writing, OI stands at $827.69 million, approaching its yearly high. A rise in OI indicates increasing market liquidity, while a decline suggests traders are closing positions and withdrawing funds.

With OI rising and SUI's price trending upward, the token could reach a higher value as more liquidity flows into the market.

SUI Price Prediction: 20% Increase Possible From Here

Currently, SUI's price is $1.92 and is 12% away from hitting a new all-time high. On October 4, the altcoin had initially dropped to $1.66 after showing signs of being ready to hit $2. This development dashed hopes that SUI would break the threshold again.

But as it stands, the token could be set to rise above the region. One reason for this forecast is the Exponential Moving Average (EMA). The EMA places great importance on recent price movements to determine the next trend.

Usually, when the price is below the EMA, the trend is bearish. But when it is above, the price trend is bullish. At press time, SUI's price is above both the 20 EMA (blue) and 50 EMA (yellow).

If this remains the same, SUI's price could surpass its all-time high of $2.18, potentially rising by 20% to reach $2.30. However, this rally may stall if holders begin taking profits before it hits $2. In that scenario, SUI's price could retrace to $1.66, reflecting a pullback as selling pressure increases.

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