The digital asset SUKU, a global decentralized remittance platform, witnessed a substantial surge earlier this week, fueled by a 250% increase in trading activity.
During its peak at nearly $0.12, the trading volume surged from $1.7 million to $12 million, coinciding with a 30% price jump.
However, it has retraced its gains and was down by 29% at the time of this writing, following a general market sentiment shift when Bitcoin fell below $95,000.
What Lies Ahead for SUKU Crypto?
Since June, SUKU has risen above the 200-day Moving Average (MA) for the first time, confirming a bullish breakout in the long term.
Nonetheless, the sudden drop observed currently could drive its value back under the crucial level.
Furthermore, the 200-day Simple Moving Average (SMA) coincides with the resistance level of the second half of 2024, which could bolster the position of buyers if maintained as a support. In such a scenario, SUKU might aim to revisit the recent highs of $0.119.
Conversely, if the sellers manage to breach the level alongside the 200-day MA, the price of SUKU may face challenges below $0.08 for a period before gathering momentum for a potential breakout attempt at the 2024 resistance.
Decline in Market Demand
The surge in price attracted a larger user base and investors, evident in the spike in active wallet addresses. The surge in social media visibility and discussions around the token contributed to the boost in market interest.
However, the buying frenzy was short-lived, as the shift in market sentiment triggered a considerable decrease in demand followed by a sell-off. This shift is reflected in the drop in Spot Cumulative Volume Delta (CVD), indicating market dominance by sellers.
Moreover, the trading volume took a nosedive, potentially hindering SUKU’s price recovery. The prospects of recovery seem slim unless there is a significant shift in overall market sentiment accompanied by a substantial surge in trading volume once more.