After reaching its peak price of $5.36 on January 6th, SUI experienced a decline of more than 30% in the past month. However, its recent surge above the 200-day Exponential Moving Average (EMA) led to an 11% increase over the last three days, surpassing many other cryptocurrencies during the general market downturn.
Following a breakout from its descending trend, traders are now interested in seeing whether SUI can surpass its immediate obstacles or not.
Bulls Targeting the 20/50 EMA Resistance
Upon dropping from the $5.36 peak, SUI found support near the $3 level (close to the 200-day EMA), which helped stabilize the downtrend and facilitated an 11% rise in recent days.
Currently, the 20-day and 50-day EMAs (around the $3.57–$3.88 range) present a barrier to a more robust bullish recovery. A daily closure above the 20/50 EMA around $4 could indicate a stronger attempt towards the $4.05–$4.50 zone.
If buyers struggle to exceed the EMAs, traders might anticipate a period of consolidation or a slight retreat towards the 200-day EMA at $3, particularly if overall market sentiment remains uncertain. In the event of a further deterioration in market sentiment, a decline towards the $2.80–$2.50 support level cannot be discounted.
At the same time, the Relative Strength Index (RSI) on the daily timeframe is hovering around 44, suggesting a slight bearish bias. A definitive breakthrough above the 50 level on the RSI would confirm an increase in buying pressure.
Derivatives Data Indicates
Trading volume surged by approximately 9.37% to reach $2.56 billion, signaling renewed trader participation. Open Interest also rose by about 6.8%, indicating new capital inflows into SUI’s Futures market.
Currently, the 24-hour long/short ratio is balanced around 1. However, Binance’s SUI/USDT ratio leans more towards bullish at 2.07.
Notably, in the 1-hour and 12-hour “Rekt” statistics, long liquidations surpassed short positions. This suggests that traders who anticipated an increase in SUI’s price were caught off guard by the decline.
Despite transient market turbulence, the uptrend in Open Interest implies potential for significant movements ahead as buyers and sellers position themselves accordingly.
As always, monitoring Bitcoin’s performance and general crypto market indicators can assist traders in assessing SUI’s short-term trajectory. While SUI’s fundamentals indicate a positive long-term outlook, the upcoming days are critical for short-term traders seeking to capitalize on market volatility.
Disclaimer: The views expressed do not constitute financial, investment, trading, or any other form of advice and reflect solely the writer’s perspective.