SUI Price Surges Following $2.4 Billion Inflow – Can Bulls Reach $2?

The cryptocurrency Sui (SUI) has recently shown a considerable rebound from its oversold conditions, largely propelled by significant inflows and bullish developments. However, while it may approach the $2 mark, overall trends suggest limited upside potential amidst a still bearish market.

Key Takeaways

Sui has bounced back from oversold levels, mainly due to the launch of Real-World Asset (RWA) tokens and strong inflows of stablecoins.
Although SUI may attempt to reach the $2 threshold, its upward movement is likely to be restricted. The general market sentiment remains bearish, with current demand insufficient for a complete reversal.
Over the last 24 hours, Sui experienced a rally of 10.39% and a notable 68.17% rise in daily trading volume, amounting to $1.06 billion.
This represented a substantial part of its total market capitalization, which is currently at $5.61 billion.

Ali Martinez on Sui Source: Ali Martinez on X

In a recent post on X (formerly Twitter), analyst Ali Martinez highlighted that Sui had reached a significant support level. The broader market likely took notice, recognizing that the altcoin was trading at a key trendline support. Reports indicate that Sui saw $2.4 billion in inflows over the past 24 hours, far exceeding inflows seen on other blockchain platforms. The positive sentiment was further bolstered by news of the R25 protocol introducing real-world assets to the Sui Network.

Sui rallies 10.4% after dropping to oversold conditions as bulls try to reverse the long-term downtrend

How Oversold Conditions Affected Sui's Price

Sui 1-day Chart Source: SUI/USDT on TradingView

Analyzing the 1-day chart, it was observed that the Relative Strength Index (RSI) hit a low of 22.15 on November 22. Since this drop, SUI has increased by 15.7%. Nonetheless, the RSI still hovers at 35, indicating a recovery from oversold levels yet remaining in a challenging zone. The On-Balance Volume (OBV) also reveals a downward trend, indicating seller dominance.

The long-term trend of Sui remains bearish, with the recent swing high at $2.23 only representing a lower high within the ongoing downtrend. For the asset to break into a long-term uptrend, it must surpass the $2-$2.23 range. Until there’s clarity in the market, traders and investors might lean towards a bearish outlook. Currently, this bounce seems better suited for selling until demonstrated otherwise.

Sui 4-hour Chart Source: SUI/USDT on TradingView

Looking at the 4-hour chart, we can see evidence of short-term bullish momentum. Fibonacci retracement levels indicate that SUI's current rally might reach between $1.88 and $2 before potentially reversing. Specifically, the $2 target aligns with significant demand identified from the 1-day timeframe. Short-term traders can take advantage of this bounce, but they should always keep in mind the prevailing long-term trends and take profits where appropriate.

Disclaimer: The information provided here does not constitute financial, investment, trading, or any other advice and reflects only the author’s personal opinion.