Sui Surges, but a $1.70 Pullback May Be on the Horizon – Here’s Why

Sui makes an impressive breakout but bulls face another challenge overhead

Sui (SUI) has experienced a significant price rally of 15.9% in the last 24 hours, becoming the leading crypto asset among the top 20 by market capitalization, according to CoinMarketCap. Despite this upward movement, concerns loom regarding potential selling pressure due to impending monthly supply unlocks.

Key Takeaways

SUI rallied 15.9% in a day, making it a top performer in the crypto market.
There are signs of bullish momentum, but resistance levels could lead to a price pullback.
Traders might consider waiting for a retracement or confirmation of a breakout before making additional purchases.
Market sentiment appears optimistic, with rising demand and open interest.

Has the Long-Term Trend of Sui Turned Bullish?

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

The one-day chart for Sui indicates that the market structure shifted to a bullish outlook when the price broke above the $1.51 local swing high. While this development is hopeful for short-term traders, the larger trend remains bearish unless the price surpasses $2.23.

Moreover, the $1.95-$2.16 area has been identified as a significant supply zone, which could affect Sui's momentum.

Sui 6-hour Chart Source: SUI/USDT on TradingView

The six-hour chart highlights that the resistance levels at $1.87 and $2.03 are critical. These were established based on Fibonacci retracement levels from a price drop to $1.31 in December. The $2.03 mark also aligns with the identified supply zone on the one-day timeframe, which could potentially halt upward movement and lead to a drop toward the $1.70-$1.75 range.

The Bullish Outlook for SUI

Sui Coinalyze Source: Coinalyze

As per data from Coinalyze, Open Interest rose by 18% in just 24 hours, suggesting increased market activity. Additionally, the rising spot cumulative volume delta (CVD) reflects strong demand in the spot market, while bullish funding rates indicate positive sentiment among traders ready to take long positions.

If this trend continues, SUI may push past $2.23 and reach even higher.

Should You Take Profits and Wait?

The range breakout has shown impressive results, with Sui nearing the important psychological resistance point of $2. However, the broader market structure still has a bearish undertone, despite recent gains.

Continuing to hold in anticipation of a more prolonged rally as Bitcoin approaches its liquidity pocket at $96.5k carries some risk. For SUI traders, it might be prudent to consider waiting for a price retracement or confirmation of a breakout and retest at the $2.23 level before entering new positions.

Conclusion

Disclaimer: The information contained in this article does not represent financial, investment, or trading advice, and solely reflects the writer’s perspective.