SUI surges 11% in 24 hours, is it still worth buying?

SUI surges 11% in 24 hours, is it still worth buying?

The Blockchain Industry: Analyzing the Recent Surge in SUI Transactions

The blockchain industry has been abuzz with the recent surge in transactions on the SUI network. After a significant drop in price and concerns about its future, SUI surprised many by surpassing its competitor Solana in daily transactions. However, questions have arisen about the authenticity and sustainability of this sudden surge.

Renowned analyst and crypto whale Andrew Kang has raised concerns about the validity of these transactions, suggesting that SUI may be artificially inflating its numbers. In his commentary, Kang highlights the need for discernment in evaluating the authenticity of these transactions. As investors and traders, it is crucial to examine whether the surge in transactions can drive a sustainable upward trend or if it is merely hype fueled by fake numbers.

The recent surge in transactions can primarily be attributed to the introduction of the on-chain game, “Sui 8192,” developed by the team behind the wallet provider Ethos Wallet. This casual game has captured the attention of users with its gameplay reminiscent of the classic puzzle game “2048.” Each move within the game triggers a transaction, which is recorded on the blockchain. This integration of gaming and blockchain technology offers an innovative and engaging experience for users.

To optimize their gameplay experience, players can set a token amount before each game through the pre-approval mechanism in Ethos Wallet. The SUI Foundation has allocated $5 million to stimulate activity within the game, providing players with the opportunity to earn rewards in the form of SUI tokens by competing against others or completing tasks. While this has undoubtedly contributed to the surge in transactions, it also raises concerns about the sustainability of this increase in activity. Will the hype fade once the marketing budget is exhausted, or will the game continue to attract users in the long run?

Investors and traders should approach SUI with caution, considering the short-term nature of the surge and the potential impact once the marketing budget is depleted. It is crucial to assess the project’s long-term prospects beyond this transaction surge. Prior to this surge, SUI had faced negative headlines, including allegations of suspicious token movements, concerns about venture capital influence, and opaque tokenomics. These controversies have left some investors wary of the project’s credibility and long-term potential.

Despite the concerns, the SUI chart currently presents a promising outlook. The price has broken out of the downward trend that persisted since the mainnet launch. Bulls have successfully defended the 23.6% Fibonacci retracement level during a retest. At present, the price is contending with the 38.2% retracement level at $0.76. If it manages to break above this resistance, the next price targets could be $0.84 and $0.92.

Price breaks out of downtrend, 1-day chart

In conclusion, the recent surge in transactions on the SUI network has sparked both excitement and skepticism within the blockchain industry. While the introduction of the on-chain game “Sui 8192” has contributed to the surge, concerns about the sustainability of this increase in activity remain. Investors and traders should carefully evaluate the project’s long-term prospects, considering the controversies it has faced and the potential impact of the marketing budget’s depletion. Nonetheless, the current price chart suggests a promising outlook for SUI, with potential resistance levels to overcome in the near future.