Following the significant market sell-off on February 3rd, Sui [SUI] has been trading between the $3 and $4 range. This price action has provided traders with the opportunity to profit from both short and long positions, with potential gains exceeding 20% in either direction.
Given the current volatility of Bitcoin [BTC], the question arises: will SUI continue its sideways movement, or is there a possibility of surpassing the $4 mark?
SUI Encounters Short-Term Resistance
Examining the daily chart, it is evident that SUI’s recent recovery reached a short-term resistance zone just below $4, marked in red. This zone coincides with key moving averages, making it a probable area for traders to take profits.
With the daily RSI showing signs of weakness, there is a chance that SUI might retrace from the $3.5-$4 range back to $3, particularly if BTC continues to exhibit choppy behavior between $94K and $100K.
Contrastingly, the shorter timeframes present a different scenario. The 4-hour chart indicates bullish price movements above crucial moving averages for the first time since late January.
While this hints at potential upward momentum in the short term, any further recovery could face resistance around $4 or $4.28 if BTC struggles to break above $100K.
Can SUI Surpass the $4 Threshold?
Market participants often seek out liquidity to influence price action, and a similar pattern can be observed with SUI, evidenced by price movements targeting key liquidation levels (highlighted in yellow).
Analysis of the 2-week chart reveals significant liquidation zones at $2.8, $3.4, $4, and $4.3. Given that $3.4 and $4 are the nearest levels within the current price range, they are likely to be tested first. A successful breach of these levels could propel SUI above $4, but the extent of the recovery will hinge on BTC’s uptrend.
Alternatively, if bearish sentiment prevails, there is a possibility of retesting the support area below $3.
Disclaimer: The views expressed in this article are personal opinions and should not be construed as financial advice or recommendations for trading.