Subsequent to achieving its highest value of $5.36 on 6th January, SUI experienced a decline exceeding 30% within the last month. Nevertheless, its recent surge above the 200-day Exponential Moving Average (EMA) resulted in an 11% increase over the past three days, outshining numerous cryptocurrencies amidst the downward trend in the overall market.
Following a short-term breakout from its downward channel, investors are now anticipating whether SUI can surpass its immediate obstacles.
Optimism towards Overcoming the 20/50 EMA Resistance
After dropping from the $5.36 peak, SUI discovered support close to the $3 level (proximate to the 200-day EMA), halting the downward trajectory and facilitating an 11% upturn in recent days.
Presently, the 20-day and 50-day EMAs (located around the $3.57–$3.88 range) are impeding a more robust bullish recovery. A conclusive daily close above the 20/50 EMA near the $4 threshold could indicate a robust effort towards recovery in the $4.05–$4.50 range.
If buyers are unable to surpass the EMAs, a sustained consolidation or a minor retreat close to the 200-day EMA at $3 could be expected, particularly if the general market sentiment remains uncertain. In case of a further decline in market sentiment, a drop towards the support range of $2.80–$2.50 cannot be disregarded.
Simultaneously, the Relative Strength Index (RSI) on the daily timeframe lingered around 44 – suggesting a slight bearish inclination. A conclusive breakthrough above the 50 level on the RSI would affirm a rise in buying momentum.
Insights from Derivatives Data
The trading volume increased by approximately 9.37% to $2.56 billion, signifying a revived interest among traders. Open Interest surged by about 6.8%, demonstrating the influx of fresh capital into SUI’s Futures market.
At present, the 24-hour long/short ratio stands at nearly 1 and is nearly evenly distributed. However, Binance’s SUI/USDT ratio displays a more bullish outlook at 2.07.
Interestingly, in the 1-hour and 12-hour “Rekt” statistics, long liquidations surpassed short liquidations. A higher number of long liquidations implies that traders who anticipated an increase in SUI’s price were caught off guard by a decline.
Despite this short-term turbulence, the upsurge in Open Interest signifies the potential for significant movements as buyers and sellers align their positions.
As always, monitoring Bitcoin’s momentum and overall market signals within the cryptocurrency space can aid traders in predicting SUI’s short-term trajectory. While SUI’s underlying fundamentals remain positive for long-term prospects, the upcoming days are critical for short-term traders seeking to leverage volatility.
Disclaimer: The information provided is the author’s opinion and should not be considered as financial, investment, trading, or any other form of advice.