The cryptocurrency market experienced a notable rebound on Thursday, buoyed by Bitcoin (BTC) inching above $58,000 amid easing U.S. inflation concerns. However, it was Sui Network (SUI) that stole the spotlight with an impressive 16% surge, trading at $1.03 at the time of writing.
Sui Network’s Explosive Growth
SUI’s meteoric rise comes as no surprise given the heightened market interest. Trading volumes have surged by 53%, indicating a strong demand for the altcoin. This uptick in trading activity coincides with SUI breaking out of an ascending triangle pattern on the one-day chart, a technical formation often associated with bullish trends.
The volume profile indicator highlights a significant cluster of trading volumes at the breakout price, reinforcing the resistance level and signaling trader confidence. Moreover, SUI’s price is comfortably above the Point of Control (POC) line, further bolstering the bullish outlook as buyers dominate this price range.
Technical Indicators Support the Uptrend
The Relative Strength Index (RSI) for SUI stands at 64, suggesting that while buying interest is strong, the altcoin has yet to reach overbought levels. This implies there is still potential for further price growth before any significant pullback.
However, SUI’s journey upward may face resistance at $1.17. Historical data shows fewer traders are concentrated at this level, which could lead to a period of consolidation. Additionally, an influx of liquidation orders at $1.17, as reported by Hyblock Capital, could hinder further gains unless the bullish momentum remains robust.
Derivatives Market Shows Growing Confidence
The derivatives market also reflects increased optimism for SUI. According to data from Coinglass, open interest has soared by over 30% in just 24 hours, climbing from $217 million to $270 million. This marks the highest open interest for SUI in five months, signaling a burgeoning confidence in the uptrend.
With funding rates now positive, the rise in open interest suggests that traders are not only holding but expanding their long positions on SUI. The long/short ratio has also jumped to its highest level in weeks, indicating a growing number of traders are betting on SUI’s price increase.
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Sui Network’s recent performance underscores a strong bullish sentiment in the cryptocurrency market. The surge in trading volumes and open interest, coupled with supportive technical indicators, positions SUI as a notable contender for further gains. However, traders should keep an eye on the potential resistance at $1.17 and the broader market dynamics that could impact future price movements.
As the crypto market continues to navigate shifting economic indicators and trader sentiment, SUI’s impressive rise is a clear signal of the altcoin’s growing appeal and potential for continued success.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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