Since the initial stages of August, Sui [SUI] has been demonstrating an upward trend in the 24-hour timeframe. Despite encountering some pullbacks along the way, like the one towards the conclusion of October, these retracements were not notably significant.
The bullish momentum observed in recent months is anticipated to persist, although there is a possibility of short-term price fluctuations.
SUI Showing Consolidation Near Record Highs
The current market outlook on the daily chart remains positive. Notably, two recent higher bottoms were established at $2.82 and subsequently at $2.97. Therefore, a daily close below $2.97 would mark a breach in market structure, potentially indicating a growing bearish sentiment.
With the RSI around 60 and consistently above the neutral 50 mark for the past four weeks, it indicates a bullish trajectory. This aligns with the positive price movement, despite SUI trading within a specific range for the past ten days.
During this range-bound period fluctuating from $3.1 to $3.94, with the midpoint at $3.52, the middle point had acted as a resistance in recent days. However, it was breached, paving the way for the bulls to target the range highs and potentially establish a new all-time high.
While the OBV exhibited a consistent uptrend with robust buying volume, the MFT displayed a downtrend over the last ten days. The consolidation phase saw a weakening momentum in MFI. Nonetheless, with SUI maintaining levels above $3.52, further gains might be on the horizon.
Spot CVD Supporting MFI Patterns
On the 3rd of December, the price of SUI witnessed rapid increments in conjunction with the Open Interest. However, in the preceding 20 hours, the OI declined by $45 million, suggesting that some bullish speculators likely opted to secure profits.
Contrarily, the spot CVD did not reflect an uptick, indicating feeble demand in spot markets. This observation reinforced the MFI’s indications of subdued buying activity, implying that a breakout from the current range might require additional time.
Examining the liquidation heatmap from the past month revealed a clustering of liquidity around $4. Conversely, towards the lower end, the subsequent liquidity cluster was noted at $3.17, slightly above the local range’s bottom.
Typically, the price tends to target this lower liquidity zone before resuming its upward trend. Usually, breakout scenarios witness a temporary dip below crucial local support levels to trigger liquidation positions before resuming the upward trajectory.
Traders are advised to anticipate a potential price retracement towards the $3.5 and $3.2 levels in the imminent days.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other form of advice and represents the author’s personal perspective.