Home Altcoins News SUI Faces $3.70 Resistance: 35% Rally Potential Ahead

SUI Faces $3.70 Resistance: 35% Rally Potential Ahead

SUI resistance

Sui (SUI), a rapidly growing altcoin, is facing an important crossroads after an impressive 75% surge in price. After reaching a high point, the token has entered a consolidation phase around the crucial resistance level of $3.70. This resistance has raised interest among both traders and investors, as it marks a key point that will determine whether the rally will continue or if a pullback is imminent. On-chain data and technical indicators show promising signs, but SUI’s future trajectory is still uncertain, depending largely on market sentiment and its ability to break through the resistance.

Bullish On-Chain Metrics: A Positive Outlook for SUI

The recent movements of SUI in the market indicate a growing accumulation of the altcoin, which could signal that its current price levels are supported by strong market fundamentals. According to data from Coinglass, in the past three days alone, there has been a massive outflow of $40 million worth of SUI coins from exchanges. This outflow is a key indicator of accumulation, as traders move their assets off exchanges into private wallets, reducing the number of coins available for immediate sale. Such movements are often seen as a sign of confidence in the token’s future prospects, as it limits the risk of a sudden price dump.

Large outflows like these generally signal that investors are confident in the long-term value of the asset and are not willing to sell their holdings immediately. During periods of consolidation or price corrections, this accumulation behavior can act as a cushion against sharp downturns, as the reduced supply on exchanges can limit selling pressure. The substantial outflow of SUI coins also suggests that there is strong demand for the asset, as it further solidifies the token’s position for potential future growth.

Additionally, SUI’s Open Interest (OI)-weighted Funding Rate is currently standing at +0.0066%, reflecting strong buying pressure from traders who are taking long positions. A positive funding rate indicates that long-position holders are more willing to bet on the continued price increase, demonstrating their confidence in the altcoin’s potential. Furthermore, the Binance SUIUSDT Long/Short ratio sits at 1.33, with 57% of top traders on the platform holding long positions. This shows that a majority of traders are optimistic about SUI’s price trajectory, supporting the argument for a continued rally.

SUI’s Price Action and Technical Outlook

At the time of writing, SUI was trading around $3.55, with a modest 0.75% increase over the past 24 hours. This slight uptick, combined with a 15% rise in trading volume, signals renewed interest in the altcoin, as more participants are joining the market. A rising trading volume is often seen as a positive sign, as it suggests stronger market participation and conviction. This uptick in volume also coincides with the price consolidation seen around the $3.70 resistance level, further suggesting that market participants are actively watching SUI for a breakout.

Looking at SUI’s price action from a technical perspective, the altcoin has been in a tight consolidation range between $3.27 and $3.83 for the past week. This narrow range follows a significant 75% rally, which was raised by a breakout from a descending trendline. The current consolidation phase could be seen as a natural pause after such a strong surge, as the market digests the previous gains and traders wait for confirmation of the next move.

This consolidation, while it may seem uneventful, is a crucial phase for the altcoin. The price action is currently at a pivotal decision point, where it could either break out to new highs or experience a pullback. If SUI manages to break above the $3.90 mark on the daily chart, this could confirm the breakout and set the stage for a potential 35% price surge, targeting a price of $5.50. A successful breakout above this resistance would confirm the bullish thesis, as it would indicate that the market has enough momentum to drive the price higher.

What Happens If SUI Fails to Break the Resistance?

However, if SUI fails to clear the $3.70 resistance level and continues to consolidate or experience downward pressure, the bullish outlook may be invalidated. In such a case, the price could revert to its previous support levels, with a potential move towards $3.27 or even lower if the downward pressure intensifies.

Traders will be closely monitoring SUI’s price action in the coming days, as this will provide more clarity on the token’s future direction. A failure to break the resistance level may lead to a prolonged consolidation phase or even a bearish reversal, especially if market sentiment turns negative.

Conclusion: SUI’s Path Forward

SUI’s rally is currently in a consolidation phase, and its future depends largely on its ability to break through the $3.70 resistance. The strong on-chain metrics, such as the large outflows from exchanges and the positive funding rate, suggest that there is a strong underlying demand for the token. Additionally, the rising trading volume and bullish sentiment from traders further support the case for a continued rally. However, if the resistance at $3.70 proves insurmountable, SUI may face a pullback or prolonged consolidation. Traders and investors alike will be closely watching for a decisive move, as the outcome could determine whether SUI reaches new highs or faces a correction.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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