Sui (SUI) has been on a bullish trajectory since August, establishing a series of higher lows on its daily chart. Despite short-term price volatility, the coin’s strong support zones and market dynamics suggest it may soon challenge its all-time high (ATH). However, the $3.2 support level is crucial for maintaining bullish momentum.

Sui’s Daily Chart Shows a Bullish Structure

Sui’s market structure on the daily timeframe remains decisively bullish. Key higher lows at $2.82 and $2.97 have kept the momentum alive. A daily close below $2.97 would signal a potential shift in trend, opening the door for bears to push prices lower.

The coin is currently trading within a defined range of $3.1 to $3.94. The midpoint of this range, $3.52, acted as resistance in recent sessions but has been breached, giving bulls hope for a rally toward the range high and beyond.

Indicators further support this bullish narrative:

• Relative Strength Index (RSI): At 60, the RSI remains in bullish territory, reflecting strong upward momentum.
• On-Balance Volume (OBV): The OBV shows a steady increase, suggesting robust buying activity.
• Money Flow Index (MFI): The MFI has weakened slightly, reflecting reduced buying strength during the recent consolidation phase.

Key Support and Resistance Levels

For Sui to maintain its bullish structure, two critical support levels stand out:

1. $3.5: This level has been tested recently and could act as an intermediate support before a deeper correction.
2. $3.2: As a historically significant level, $3.2 is seen as a pivotal support zone. A retest of this level could precede a strong rally.

Liquidity and Market Dynamics

Sui’s liquidation heatmap reveals vital insights into trader behavior and potential price movements:

• Liquidity at $4: There is a notable cluster of liquidity near the $4 mark, indicating a potential upside target for bulls.
• Liquidity at $3.17: To the downside, significant liquidity rests just above the range lows, suggesting the possibility of a dip before a breakout.

These clusters align with the idea of a “liquidity grab,” a common phenomenon where prices temporarily dip to flush out leveraged positions before resuming their trend.

Spot Market Activity Suggests a Lack of Momentum

While Sui’s price gained rapidly on December 3, the Open Interest (OI) in futures markets dropped by $45 million over the past 20 hours. This decline suggests some bullish speculators have taken profits.

Additionally, the spot Cumulative Volume Delta (CVD) has failed to show an uptrend, indicating weak demand in the spot market. This aligns with the MFI’s findings of reduced buying pressure, suggesting that a range breakout may take longer than anticipated.

What’s Next for Sui?

The road to a new all-time high will likely involve navigating through the $3.2 support level. Traders should be prepared for short-term dips toward $3.5 and $3.2, as the market may seek to collect liquidity before making a decisive move higher.

If bulls can defend the $3.2 zone and demand increases in spot markets, Sui could break out of its current range and test the $4 resistance cluster. A breakout above $4 would signal a renewed push toward price discovery and potentially higher levels.

Conclusion

Sui’s bullish momentum is evident, but the $3.2 support is critical for sustaining its upward trend. While short-term volatility may cause temporary dips, the coin’s strong structure and market dynamics suggest it is well-positioned for a rally toward a new ATH.

Traders should watch for a retest of $3.2 and increased spot market demand as key indicators of the next major move.