Although Sui [SUI] had been experiencing a strong uptrend, the recent turbulence in the overall market has caused some setbacks. Since the beginning of September, the token has surged by 131%, maintaining a clear bullish trend on the daily chart.
The trading volume has been higher than usual, indicating a possibility of further upward movement. However, there is one major hurdle standing in the way of achieving bullish targets above $2.
Increased buying volume and solid accumulation patterns
Since September 15th, the daily market structure has shown consistent bullish signals. Following a minor price dip to $0.8, the token swiftly recovered, with trading volume in September surpassing that of July and the latter part of August. This uptrend reflects a strong bullish sentiment.
Despite encountering selling pressure after Bitcoin [BTC] corrected from $66.5k, buyers remained determined to push prices higher. While reaching the $2 mark, they faced resistance, indicating the importance of overcoming selling pressure.
With the CMF at +0.06 and the A/D indicator surpassing previous highs seen in March and April, it is evident that recent buying pressure has been significant, favoring accumulation trends and supporting the bullish case for September.
SUI bulls confronted by Fibonacci retracement levels
A bearish divergence in the daily RSI emerged on October 2nd as the token approached the $1.81 resistance level, which stands at the 78.6% retracement level based on Sui’s downtrend since April.
Recent data from the short-term liquidation heatmap highlighted the $1.77 zone as an area with substantial liquidity. Following a move beyond this zone towards the $2 psychological resistance level, the token retraced below the Fib level once again.
While the daily chart indicates a strong bullish structure, breaking through the $1.81 resistance is crucial. Failure to surpass this level could weaken bullish sentiment and potentially lead to a downward price correction.
Disclaimer: The opinions expressed in this article do not constitute financial, investment, trading, or any other form of advice and solely represent the writer’s perspective.