Sui (SUI) Surge: Can It Break $2 Resistance or Will Bears Take Control?

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• Sui (SUI) saw a 10.39% rally, but resistance at $2 remains a major hurdle.
  
• Stablecoin inflows and the R25 protocol announcement fueled the short-term price surge.
  
• The overall market trend for SUI remains bearish, with caution advised for long-term investors.

Sui (SUI) has seen a remarkable 10.39% rally over the last 24 hours, with a surge in trading volume to $1.06 billion, pushing its market capitalization to $5.61 billion. However, despite the short-term bullish momentum, analysts warn that SUI’s long-term outlook remains bearish. The recent price increase has raised questions about whether Sui can break through critical resistance levels and initiate a full trend reversal.

The Key Drivers Behind SUI’s Recent Surge

Sui’s recent price movement appears to have been fueled by a combination of strong stablecoin inflows and news surrounding the R25 protocol. According to recent reports, Sui saw a significant $2.4 billion in inflows over the past 24 hours—far surpassing the activity on other blockchain networks. This could explain the sudden uptick in demand and the rally in price.

In addition, the Sui network was bolstered by the announcement that the R25 protocol would introduce real-world assets to the platform, further strengthening investor sentiment. The altcoin’s trading behavior has been marked by significant interest, especially with the token testing key trendline support. Analyst Ali Martinez also highlighted this in a post, noting that the market was closely watching the support level that SUI had reached.

Short-Term Price Targets and Resistance

Despite the recent rally, SUI’s long-term price trend remains firmly bearish. The Relative Strength Index (RSI) for Sui dropped to a dangerously low 22.15 on November 22, signaling oversold conditions. Although the RSI has since risen to 35, it still indicates weakness, with seller dominance apparent in the On-Balance Volume (OBV) chart. The key resistance area for Sui lies between the $2 and $2.23 range, and breaking this zone would be essential for a sustained bullish reversal.

For traders focused on short-term gains, Sui’s current rally presents a potential opportunity to target price levels between $1.88 and $2. However, the broader market sentiment and the continuation of a bearish trend suggest that any rise above these levels may be short-lived.

Also Read: Sui Price Prediction 2025: Can SUI Rebound to $7 After Hitting Key Support?

Outlook: Can SUI Break Through Resistance?

In the coming days, Sui’s price will likely be tested at the $2-$2.23 zone. If the altcoin fails to maintain momentum and break this resistance, the short-term rally could be followed by a further decline, keeping the broader downtrend intact. For investors, it’s critical to stay cautious and consider taking profits near the $2 level. Until Sui can establish a strong higher high, it’s wise to remain bearish in the long term.

While SUI’s recent rally has attracted attention, traders and investors should remain cautious. Despite positive short-term developments, the broader trend continues to favor sellers. If Sui fails to overcome resistance at the $2-$2.23 level, a return to bearish price action could be imminent. As always, it’s crucial for traders to stay informed and ready to adjust their strategies as market conditions evolve.

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.