Crypto Market Update: SUI Breaks Resistance and TON Shows Resilience

SUI surpasses trend line resistance while Toncoin records a 7% gain despite declining trading volumes. SUI’s week performance aligns with other utility tokens, while TON is affected by Telegram user demand. Both have market caps over $7 billion, with potential support levels and volatility concerns outlined.

In recent crypto news, SUI has successfully breached a significant trend line resistance, while Toncoin (TON) demonstrates resilience by gaining nearly 7% over the past 24 hours, now trading at $2.98. Despite this price increase, trading volumes for TON have declined by 8%, suggesting that the surge is not linked to specific positive developments regarding the project.

Both SUI and TON hold market capitalisations exceeding $7 billion. SUI’s performance has mirrored that of other utility tokens in the smart contracts sector, posting a 5.8% rise in the past week. Conversely, TON has registered a 4.6% loss over the same timeframe. As the utility token of Telegram’s blockchain, TON’s value is influenced by demand for in-app purchases within Telegram.

SUI’s price rise above trend line resistance occurred for the second time last weekend. Historically, such a breach has been followed by rapid price declines within a descending triangle pattern, indicating potential volatility. Critical support for SUI is located at approximately $1.70, a level that has previously acted as a launch point for price increases. A significant drop from this support could indicate a potential drop of 25% if this trend continues.

Current momentum indicators suggest a slowdown in positive momentum, as indicated by the MACD histogram and Relative Strength Index (RSI), signalling that selling pressure has begun with the start of the American trading session.

In April, Toncoin experienced a sharp decline, primarily due to profit-taking following a rally after Telegram CEO Pavel Durov’s legal issues were resolved. The recent price increase is seen as a recovery from the previous supply imbalance, suggesting a bullish short-term outlook driven by technical indicators, although upcoming fundamentals may significantly influence price movements.

For potential pullbacks, a key support level for TON is identified at $2.76. Should the upward momentum continue, TON may see a rally that takes it above the $4 resistance level in the coming weeks as market conditions stabilise.