Throughout the initial week of August, Sui [SUI] has demonstrated an upward trend in the 1-day timeframe, with any retracements, like the one observed towards the end of October, not being notably significant.
The momentum of the bullish trend in recent months is expected to persist, although short-term fluctuations in price are plausible.
SUI Holding Ground Below Record Levels
The current market structure on the daily chart remains positive, with two recent higher lows established at $2.82 and subsequently at $2.97. Thus, slipping below $2.97 by the daily close would signify a break in market structure, potentially leading to a more substantial decline indicative of increasing bearish sentiment.
The RSI, maintaining a level around 60 and staying above the neutral 50 mark for the last four weeks, indicates a bullish trajectory. This complements the ongoing bullish price movements, despite SUI trading within a defined range for the past 10 days.
This range has spanned from $3.1 to $3.94, with the midway point at $3.52. Although the midpoint acted as resistance recently, it has been surpassed, with the bulls now eyeing the range highs and a fresh all-time peak.
While the OBV has been on a consistent uptrend, displaying robust buying activity, the MFT has seen a decline over the last ten days. Despite the consolidation leading to a loss of strength in the MFI, remaining above $3.52 could signal further upward movement for SUI.
Observing CVD Support Amid MFI Concerns
SUI’s price surged notably on December 3, accompanied by a rise in Open Interest. However, in the last 20 hours, OI dropped by $45 million, hinting that certain bullish speculators might have opted to secure profits.
The spot CVD, refraining from an upward trend, suggests weak demand in the spot markets. This aligns with the MFI’s analysis of insufficient buying interest, implying that a breakout from the range might encounter delays.
Reviewing the liquidation heatmap from the preceding month, a substantial liquidity cluster is noted at $4, with the next cluster to the downside at $3.17, slightly above the recent range lows.
Potentially, the price might gravitate towards the lower liquidity region before making another upward move. Typically, during range breakouts, prices dip below key local support levels to trigger liquidation before the subsequent upward climb.
Traders are advised to anticipate a potential price correction towards the levels of $3.5 and $3.2 in the upcoming days.
Disclaimer: The views expressed are personal opinions and should not be considered as financial, investment, or trading advice.