After reaching an all-time high (ATH) of $5.36 on January 6, SUI has shed over 30% of its value in the past month. However, a recent rebound above the 200-day Exponential Moving Average (EMA) triggered an impressive 11% surge over the last three days, outpacing much of the crypto market amid a broader downtrend.
Bulls Eye the 20/50 EMA Resistance
SUI’s correction found support around the crucial $3 mark, aligning with the 200-day EMA. This level acted as a strong base, facilitating the recent recovery. Now, bulls are eyeing the 20-day and 50-day EMAs, which currently hover in the $3.57–$3.88 range, as potential breakout points.
A daily close above the 20/50 EMA around the $4 mark could pave the way for a further rally toward the $4.05–$4.50 region. However, failure to break past this resistance could see SUI consolidating or pulling back towards the 200-day EMA at $3. If bearish sentiment intensifies across the broader market, a drop to the $2.80–$2.50 support region remains a possibility.
Technical Indicators Suggest Mixed Sentiment
The Relative Strength Index (RSI) on the daily timeframe remains around 44, indicating a slight bearish advantage. A decisive move above the 50 level would be a key signal of growing bullish strength, potentially reinforcing a breakout.
Derivatives Market Shows Renewed Interest
SUI’s derivatives data reflects increased trader engagement. Volume surged by 9.37% to $2.56 billion, while Open Interest rose by 6.8%, suggesting new capital inflows into the Futures market.
At the time of writing, the overall long/short ratio stood near 1, indicating a balanced sentiment among traders. However, Binance’s SUI/USDT ratio leaned more bullish at 2.07. Interestingly, short-term liquidations have favored longs, implying that bullish traders were caught off guard by sudden price dips.
Also Read: SUI Eyes 47% Surge to $5, With Bullish Sentiment Driving Price Action Above $3 Support
Despite short-term fluctuations, the rise in Open Interest suggests potential for more significant moves ahead. Traders should closely monitor Bitcoin’s momentum and overall market sentiment to gauge SUI’s near-term direction. With strong fundamentals, SUI remains a promising asset, but short-term traders must navigate key resistance levels carefully.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
