The SUI network has a sudden spike of 145% in active wallet addresses. This drastic spike has aroused skepticism in the community about whether it is real adoption. As uncertainty takes over the scenario, SUI’s price continues to decline, suggesting that traders are prioritizing caution in these situations and are not being impressed by wallet growth figures.
SUI active wallets spike by 145% while fees remains normal
A crypto analyst who goes by the pseudonym Benji observed that the active wallets on SUI increased by 145% from 74K to 181,557 in a day. However, chain fees didn’t move. $2,470 today. $2,478 yesterday. Identical to 107,000, new addresses appeared, and the chain earned the same money. Under normal circumstances, a sharp increase in active wallets would lead to more transactions, higher gas consumption, and consequently higher fee revenue.
The fact that fees remained virtually unchanged suggests the additional addresses were either generating very little economic activity or using sponsored (gasless) transactions where users do not pay network fees directly or were created by automated bots or airdrop farmers. This disconnect between active addresses and fee generation is why some analysts are questioning whether the surge reflects genuine user adoption.
SUI rejected at the 50-day moving average
Meanwhile, SUI has stalled after making gains. The coin hit resistance at the 50-day MA, a significant indicator that traders look up to. The 50-day moving average (50-day MA) is an important technical indicator because it helps identify an asset’s medium-term trend by averaging its closing prices over the previous 50 trading days.
When the price trades above the 50-day MA, it typically signals that buying momentum is strengthening and the market is entering an intermediate-term uptrend. Conversely, trading below the indicator suggests bearish momentum remains in control. The 50-day MA also serves as a dynamic support or resistance level, with buyers often stepping in when prices pull back to it during an uptrend. Because it is closely monitored by traders and institutional investors, a breakout above the 50-day MA is often viewed as a sign of improving market sentiment and can attract additional buying interest, increasing the likelihood of further price gains.
SUI will have a relief rally above $0.74 before tanking to $0.10 zone
Another analyst who checked the price action on the weekly chart stated that there might be a consolidation rally, which could take the prices just above $0.74. However, this will just be a little spike on the way downwards.
The analyst expects that this downward trend will take SUI to another accumulation zone, which is in the range between $0.10 and $0.15.
