SUI retraces after rally, eyes growth with 21Shares deal

Sui has retreated from its recent high of $4.21 on May 12, now trading at $3.84, as technical indicators show weakening strength. Despite the recent dip, the layer-1 token remains one of the top performers in the sector, having risen over 100% during its most recent rally. However, momentum has slowed. 24-hour daily trading volume is down 30.5% to $1.13 billion, while derivatives activity has dropped 31.2% to $3.07 billion, as per Coinglass data. Open interest has edged down 1.8% to $1.8 billion, pointing to cooling short-term speculation. The decline comes just as Sui (SUI) announced a new partnership on May 14, with 21Shares, a well-known issuer of crypto exchange-traded products. The collaboration will focus on boosting global awareness and adoption of SUI, especially in the U.S., where 21Shares is expanding as regulatory conditions improve and institutional demand grows. “Partnering with Sui speaks to where we see the future of blockchain infrastructure heading,” said Federico Brokate, head of U.S. business at 21Shares. He cited Sui’s speed, scalability, and expanding DeFi ecosystem as important strengths that might help it play a major role in the upcoming wave of crypto growth. According to DeFiLlama data, Sui currently has $2.06 billion in total value locked, placing it eighth out of all blockchains. Over the past month, that number has increased by almost 70%, indicating a rise in both user and developer activity. Looking at the technical picture, SUI appears to be consolidating just below resistance at $3.92 after its rally. Although it has fallen from recent highs, the relative strength index is still above neutral at 63. The moving average convergence divergence has turned bearish with a negative crossover developing, and may be an early warning sign of momentum loss. Short-term momentum indicators, such as the Stochastic RSI, flash neutral-to-sell signals and show waning strength. All of the major moving averages, from 10 to 200 days, are still in buy territory, indicating that the overall trend is still bullish. A slight narrowing of the Bollinger Bands suggests less volatility. SUI may consolidate before making another upward move if it can maintain support at the $3.66–$3.80 range, especially if developments like the 21Shares partnership boost investor trust and sentiment. Source: https://crypto.news/sui-cools-off-after-strong-rally-can-21shares-partnership-fuel-new-momentum/