After experiencing a cascade of liquidation on February 3rd, the digital currency Sui [SUI] has been trading in the range of $3 to $4. This price movement has provided opportunities for traders to make profits, with fluctuations of over 20% in both directions, whether by shorting or going long based on the highs and lows of the range.
With Bitcoin [BTC] showing unstable behavior, the question arises: will Sui [SUI] continue its sideways movement, or is there a possibility of surpassing the $4 mark?
Sui [SUI] Encounters a Supply Zone in the Short Term
Examining the daily chart, it is evident that the recent recovery of Sui [SUI] reached a short-term supply zone marked in red, just below $4. This zone coincided with significant moving averages, indicating it as a probable point for swing traders to take profits.
Considering that the daily RSI was below the usual levels, Sui [SUI] might retract from the $3.5-$4 range back to $3, particularly if Bitcoin [BTC] continues its fluctuations between $94K-$100K.
However, a different scenario is visible on the lower timeframe. The 4-hour chart displayed bullish price movements above key moving averages for the first time since the end of January.
While this signals a potential uptrend in the shorter timeframe, any further recovery might be limited to $4 or $4.28 if Bitcoin [BTC] does not surge past $100K.
Can Sui [SUI] Surpass the $4 Barrier?
Market makers often seek liquidity to influence price action. A similar pattern was observed with Sui [SUI] as it interacted with yellow levels (indicating high liquidation zones).
Reviewing the 2-week chart, the critical liquidation zones were identified at $2.8, $3.4, $4, and $4.3. Given that $3.4 and $4 are the nearest levels within the current price action, they might be the first to be touched. If this occurs, Sui [SUI] could potentially exceed $4, but its extended recovery will likely rely on Bitcoin [BTC]’s upward momentum.
Alternatively, there is a possibility of retesting the support region below $3 if a bearish trend emerges in the market.
Disclaimer: The information shared is the writer’s opinion and does not serve as financial, investment, trading, or any other form of advice.