Cryptocurrency Market Surges as Fed Raises Interest Rates by 50 BPS: Bitcoin Breaks $60,000; Altcoins Follow Suit
During Wednesday’s U.S. trading session, the cryptocurrency market saw a sharp rise following the Federal Reserve’s interest rate hike of 50 basis points (BPS). Bitcoin’s price surged past the $60,000 mark, reigniting recovery momentum in the altcoin market. Among the top performers was Layer 1 cryptocurrency SUI, which experienced a notable 7% increase, reaching $1.25, emerging as one of the day’s biggest gainers. The question now is whether this rally can maintain its momentum.
SUI Price Breaks Out from Key Reversal Pattern
In September, SUI has outpaced many major altcoins, reflecting its strong performance. The daily chart shows an impressive price recovery from $0.74 to $1.21, marking a 64% increase. This upward trend allowed SUI to reclaim key exponential moving averages (20, 50, 100, and 200-day EMAs), setting the stage for a bullish reversal.
The price action has formed a classic bullish reversal pattern known as an inverted head and shoulders, which consists of three distinct troughs. The middle trough, or the “head,” is the lowest, while the outer two “shoulders” are relatively higher, signaling a potential shift in market sentiment.
USDC Integration and MoviePass Partnership Boost SUI
SUI’s recent price momentum has been further bolstered by key developments, including its integration with USDC. Circle, the company behind USDC, is enhancing the stablecoin’s capabilities by integrating it with the Sui Network through the Cross-Chain Transfer Protocol (CCTP). This partnership improves USDC’s interoperability across multiple blockchains, making cross-network transactions more seamless. With USDC being one of the most widely used stablecoins, SUI could see an influx of liquidity and a boost in DeFi activity.
Additionally, SUI has formed a groundbreaking partnership with MoviePass, a subscription-based movie ticketing service. This collaboration aims to decentralize the film industry by using blockchain technology to empower fans and provide filmmakers with innovative tools for content creation. This initiative highlights Sui’s commitment to expanding its use cases beyond traditional finance.
Total Value Locked (TVL) Surges as DeFi Activity Expands
According to DeFiLlama, the total value locked (TVL) in SUI’s ecosystem has climbed steadily since early August, peaking at $738 million. This rise in TVL is seen as a positive indicator of network growth, as more capital is flowing into the protocol, bolstering its DeFi ecosystem.
On Tuesday, SUI’s price broke decisively above a key resistance trendline at $1.10, signaling a shift in market sentiment. The 6% intraday gain that followed adds to the bullish breakout, potentially paving the way for a rally toward the $1.44 resistance level, with an extended target of $1.70.
However, if SUI fails to sustain this breakout, a drop below $1 could reignite selling pressure, leading to a consolidation phase.
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