On Thursday, the digital currency market saw a recovery, with Bitcoin [BTC] surpassing $58,000 as traders responded to news of easing US inflation. Sui Network [SUI] led the way with a remarkable 16% increase, currently trading at $1.03.
SUI’s surge was accompanied by a surge in market interest in the alternative coin. According to data from CoinMarketCap, trading volumes have surged by 53% at the current time.
Positive Developments for SUI
The spike in SUI trading activity coincided with the price hitting the upper limit of the ascending triangle pattern on the daily chart.
The volume profile indicator indicates a concentration of trading volumes at the breakout level, which also serves as a critical resistance level. This suggests a willingness among traders to pay a premium for SUI, demonstrating their confidence in the upward trend.
Additionally, the SUI price was trading above the Point of Control (POC) line, further bolstering the bullish stance as buyers dominate in this range.
With the Relative Strength Index (RSI) sitting at 64, it indicates that despite the growing number of buyers, SUI has not yet reached overbought levels, leaving room for additional growth.
The anticipated upward movement may encounter resistance at $1.17. Notably, the volume data showed a significant decrease in the number of traders clustered at this price level, which could lead to a consolidation phase.
On a different note, $1.17 has proven to be a formidable barrier, with data from Hyblock Capital revealing a surge in liquidation orders at this price point. Approaching this level might weaken the uptrend unless strong buying momentum persists.
Surge in Open Interest Reaches a Peak Since March
Derivative markets reflected a growing interest in SUI, with data from Coinglass indicating a more than 30% increase in open interest in a 24-hour period, climbing from $217 million to $270 million.
Currently, SUI’s open interest is at its highest level in five months, signaling a rising confidence in the ongoing uptrend as traders establish fresh positions.
With funding rates now positive, the increased open interest signifies a surge in long positions on SUI. This further validates the optimistic sentiment that the token is poised for further gains.
Moreover, the long/short ratio has significantly risen to its highest point in weeks, indicating a rise in traders betting on price appreciation.