Evaluating SUI’s Price Movement Ahead of $82.8 Million Token Unlock

SUI

As a recent report from AMBCrypto stated, Sui is set to experience an $82.8 million token unlock on January 1st. This event is part of a monthly schedule that may contribute to increased selling pressure on the altcoin, which could hinder any attempts to initiate a bullish trend reversal.

SUI 1-day Chart

Key Takeaways:

Sui is anticipating an $82.8 million token unlock, posing potential selling pressure.
The current trading range for Sui is between $1.30 and $1.68, with a recent price of $1.50.
An increase in momentum is required for Sui to challenge the upper range limit.
Short-term trading opportunities exist, but caution is advised due to market trends.

Current Market Overview for Sui

The one-day chart illustrates a range in Sui's prices that has persisted since November, marked in purple between $1.30 and $1.68. The mid-range level of this price action is identified at $1.49, while Sui [SUI] was trading at around $1.50 at the time of this writing. This indicates a potentially bullish development.

A shift of the mid-range resistance into support typically suggests a coming rally towards the upper boundary at $1.68. Bullish activity has pushed Sui's price above the mid-range for the first time since December 17th.

However, despite the recent upward movement, the On-Balance Volume (OBV) has been static, and there is a lack of a clear upward trend. The trading volume has also remained significantly below the 20-day moving average over the last two weeks, serving as a caution to Sui bulls, even as the Relative Strength Index (RSI) points to a possible shift in momentum.

Exploring the Bullish Scenario

SUI 1-hour Chart

Recent days have seen Sui achieve multiple bullish breaks in its market structure. Additionally, Bitcoin [BTC] is approaching the psychological resistance level of $90,000, which might favor traders looking for short-term opportunities.

In this scenario, a price retest of the $1.50 level could provide an entry point for buyers targeting the $1.68 range highs. Yet, a drop below $1.43 would invalidate this bullish expectation.

Advice for Traders: Stay Cautious

Indicators suggest that Sui bulls are not particularly strong, given the OBV and diminishing volume observed in the one-day timeframe. Although some demand exists on lower timeframes, pursuing a short-term bullish strategy carries risks.

Traders are advised to either remain on the sidelines or wait for a breakout beyond the mid-range resistance to fail before considering a short position. A fall below $1.43 would indicate a bearish shift in price structure.

Conclusion

Disclaimer: The views expressed here are solely the author’s opinion and should not be considered financial, investment, or trading advice.