SUI, the cryptocurrency that has garnered attention for its recent upward momentum, shows signs of a potentially strong rally. As it hovers near the $3.30 mark, various technical indicators point to an impending price surge, with a possible 24% rise that could push SUI to $4.05.

Recent Price Action and Key Support Levels

In the last 24 hours, SUI’s price increased by over 6.50%, which has captured the attention of both traders and investors. As of the latest trading data, SUI is positioned around the $3.30 level, showing significant strength despite mixed sentiment from the broader market. The cryptocurrency’s recent movement is attributed to the formation of a bullish double-bottom pattern, a strong technical signal that often indicates an upcoming upward price movement.

This pattern emerged after SUI tested its critical support at $3, an area that has acted as a solid base for the coin. During the recent market downturn, SUI found stability at this level, successfully retesting both the $3 support and the 200 Exponential Moving Average (EMA). The resulting bullish engulfing candlestick pattern adds further confirmation to the idea that SUI could be on the cusp of a larger rally.

Divergence in Sentiment: Sellers vs. Buyers

While the technical indicators point toward a promising future, not all players in the market are as optimistic. On-chain data from Coinglass shows that long-term holders have been offloading their SUI tokens, with $6 million worth of tokens flowing onto exchanges in just 48 hours. This suggests that long-term holders may be taking profits or positioning themselves for a potential downturn.

On the other hand, short-term traders have remained more optimistic, with $25.5 million worth of long positions placed at the $3.11 level. These positions reflect a continued bullish sentiment among traders who believe in SUI’s potential for further price growth.

The divergence between long-term holders and short-term traders may introduce volatility in the short term, especially if the sell-offs by long-term holders continue. However, if SUI can maintain its support at the $3 level, the bullish momentum could continue, sending the price toward the $4.05 target.

Leveraged Positions and Liquidation Risk

In addition to the bullish technical signals, leveraged positions also play a significant role in SUI’s price dynamics. At present, there is a high concentration of leveraged long positions, with traders holding $25.5 million worth of long bets at $3.11. On the flip side, $6.37 million in short positions have been placed at the $3.389 price level.

These over-leveraged positions increase the risk of liquidation, particularly if the price moves suddenly in either direction. If SUI breaks above these critical levels, the forced liquidations could fuel a chain reaction, amplifying the upward movement. This could push the price toward $4.05, making it a potentially lucrative opportunity for traders who are quick to spot the trend.

Conclusion and Future Outlook

Despite the mixed sentiment in the market, the technical setup for SUI appears to be strongly bullish. The cryptocurrency’s ability to hold above the $3 support level is crucial for sustaining its upward momentum. If SUI can continue to build on its recent price action and maintain its position above this critical threshold, a 24% surge to $4.05 is well within reach.

However, investors should remain cautious of the ongoing sell-offs by long-term holders and the high levels of leveraged positions in the market. These factors could lead to increased volatility in the short term. Still, if the market sentiment continues to favor the bulls, SUI could experience a substantial price increase in the coming days.