Grayscale’s introduction of a new Sui (SUI) Fund had a considerable impact on the cryptocurrency’s value. The market responded positively, resulting in a substantial rise in SUI’s price. Since hitting a low point in July, SUI has surged by over 100%, reflecting the heightened interest and increased demand following this fund’s introduction.

This bullish trend has also led to a rise in leveraged long positions. A recent surge in long liquidations, amounting to $19.52 million, highlights the volatility and risks associated with the current rally. As the price nears resistance levels, the question becomes whether the bullish trend will continue or if a retracement is on the horizon.

Technical Analysis and Resistance Levels

Currently, SUI is facing significant resistance between $0.95 and $0.96. Despite moving towards the $1 mark, the cryptocurrency has struggled to break through this resistance zone. This level has historically been a point of contention, indicating that surpassing it might be challenging.

The Relative Strength Index (RSI) shows some room before reaching overbought conditions, suggesting that there might be further bullish potential if momentum continues. If the current trend persists, the next resistance level to watch is around $1.17. This zone could be a target if the bulls manage to overcome the immediate resistance.

Impact of Long Liquidations

The surge in long liquidations has had a noticeable impact on SUI’s price. Although the liquidations amounted to $19.52 million, they have not yet triggered significant sell-side pressure. This situation is somewhat reflected in the whale versus retail delta (WRD) metrics. The WRD, which measures the difference between whale and retail investor activity, has remained above zero for the past five days, indicating that whales still have substantial long exposure.

In the last 24 hours, the WRD score reached 15 points, suggesting that whales continue to hold long positions. This factor could explain why SUI’s price has maintained its resistance against downward pressure despite the recent liquidations.

Accumulation and Distribution Indicators

The accumulation/distribution indicator has also been a crucial metric in assessing the current market sentiment for SUI. At the time of writing, the indicator peaked at 1.05 billion, reflecting that the market sentiment remains bullish. This uptrend in accumulation suggests that buying interest remains strong, supporting the potential for further price increases.

Potential Scenarios for SUI

Given the current market conditions and technical indicators, several scenarios could unfold for SUI:

1. Break Above $1: If SUI can overcome the resistance between $0.95 and $0.96, it could potentially push above $1 and test the $1.17 resistance level. Continued bullish momentum and strong buying interest would be necessary to achieve this.
2. Retracement and Pullback: There is also a significant possibility of a retracement if profit-taking occurs or if overall crypto sentiment remains weak. In this case, SUI might experience a pullback to lower support levels before any further upward movement.
3. Continued Bullish Trend: If the market sentiment improves and buying interest remains high, SUI could continue its rally. The current uptrend in accumulation and whale activity supports the possibility of extending the bullish trend.

Investment Considerations

For investors considering SUI, several factors should be evaluated:

• Resistance Levels: Pay close attention to key resistance levels around $0.95, $1, and $1.17. Understanding these levels can help in making informed trading decisions and setting realistic targets.
• Technical Indicators: Monitor technical indicators such as RSI and MACD to gauge potential price movements and market conditions. These indicators provide insights into whether the current trend is likely to continue or if a retracement is imminent.
• Market Sentiment: Assess the overall market sentiment and its impact on SUI. Positive developments in the broader crypto market could bolster SUI’s price, while negative sentiment might lead to a pullback.

Conclusion

Sui (SUI) has demonstrated impressive growth following the introduction of a new fund by Grayscale, but it now faces significant resistance and potential retracement risks. With the price struggling to break above key resistance levels and long liquidations impacting the market, investors must carefully consider their strategies.