SUKU cryptocurrency, a global decentralized remittance platform, experienced a substantial surge early in the week, fueled by a 250% increase in trading volume.
Reaching a peak price of nearly $0.12, the trading volume skyrocketed from $1.7 million to $12 million, leading to a 30% price surge.
However, it swiftly retraced its gains and dropped by 29% by the time of this report, in response to a general market sentiment change due to Bitcoin slipping below $95,000.
What Lies Ahead for SUKU Cryptocurrency?
Starting from June, SUKU surged above the 200-day Moving Average (MA) for the first time, confirming a strong long-term bullish breakout.
The sudden price decline witnessed could potentially drive it back below this crucial level.
Moreover, the 200-day SMA coincided with the resistance level of the second half of 2024, which might strengthen the market position of the buyers if successfully held as a support. If maintained, SUKU could aim to revisit its recent peaks around $0.119.
Conversely, if the sellers manage to breach this level in conjunction with the 200-day MA, SUKU’s price could face challenges hovering below $0.08 for some time before gathering momentum to potentially break through the 2024 resistance level.
Decline in Market Demand
The price surge attracted a larger user base and hodlers, evident from the spike in active addresses. The increased dominance on social media platforms also played a role in driving market interest through token mentions.
Unfortunately, the fear of missing out (FOMO) buying spree was short-lived, as the shift in market sentiment triggered a significant drop in demand and initiated a sell-off. This shift is illustrated by the decrease in Spot Cumulative Volume Delta (CVD), indicating the sellers’ prevailing influence.
Furthermore, the trading volume took a dive, potentially hindering SUKU’s recovery in price. Any prospects of recovery would likely be contingent upon a reversal in broader market sentiment coupled with a substantial surge in trading volume once more.