Sui [SUI], a burgeoning cryptocurrency, experienced a period of robust growth towards the close of April, yet has since seen a notable retraction, shedding 8.8% of its value since Friday, May 2nd. This downturn follows a significant bullish resurgence where SUI successfully reclaimed a bullish market structure on its 1-day chart on April 23rd, surging past the previous lower high of $2.78.
This upward momentum coincided with a swift rally in Bitcoin [BTC], which climbed from $85,000 to $93,000. However, Bitcoin has recently encountered resistance around the $97,000 mark, triggering a subsequent downward trend that SUI appears to be mirroring.
Technical Indicators Suggest Potential Dip Before Possible Rebound
After retracing a substantial portion of its November rally by April, Sui’s bulls have been actively attempting to regain control. The recent break in market structure presented a strong bullish signal, despite the $3.5 level failing to hold as support.
Over the past ten days, SUI‘s rally saw the Chaikin Money Flow (CMF) rise above +0.05, indicating a significant influx of capital into the market. The Money Flow Index (MFI) also reflected this bullish momentum and has yet to display any bearish divergence on the daily timeframe. This combination of indicators and price action initially painted a bullish picture for the short term.
However, the current bearish pressure, influenced by Bitcoin’s recent decline, suggests that SUI may be poised for a price dip in the coming days. Potential support levels to watch include $3.06, $2.75, and $2.45.
Liquidation Heatmap Points to Key Price Targets Around $3
Analysis of the 3-month liquidation heatmap provides further insight into potential price movements for SUI. The heatmap reveals immediate liquidity pockets around the $3.14 and $3 levels, suggesting these areas are likely to attract price action in the near term. Below these levels, the $2.8 and $2.3 marks also present as zones of interest, although their magnetic pull may be less pronounced.
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Given this data, a move towards the $3 level appears highly probable in the short term. This could potentially present a buying opportunity for investors. However, cautious traders are advised to closely monitor Bitcoin’s sentiment before initiating any buy positions in SUI.
Conversely, should a bullish reversal occur, the $3.9 level stands out as a significant liquidation cluster that bulls might target as the next resistance.
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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