Sui (SUI) has been experiencing a period of consolidation, moving within a tight range of $3 to $4 over the past ten days. This sideways movement has been a profitable trading zone, as price fluctuations have allowed traders to capitalize on both upward and downward swings, gaining over 20% by either shorting or going long within this range. However, the key question is whether SUI can break above the $4 level or if the sideways pattern will continue, especially with Bitcoin (BTC) showing some choppy price action recently.
Currently, SUI is encountering a resistance zone just below the $4 level, which aligns with a short-term supply area. This zone has been reinforced by the presence of key moving averages, making it a likely region for profit-taking among swing traders. The daily Relative Strength Index (RSI) is also below the average, indicating that SUI may see a retracement back to the $3 level, particularly if Bitcoin continues its choppy movement between $94K and $100K.
Despite these potential bearish signals, the 4-hour chart suggests a different perspective. On shorter timeframes, SUI has been showing bullish price action as it trades above important moving averages for the first time since late January. This points to the possibility of upward momentum in the near term. However, even with this positive price movement, SUI’s rally may be capped around the $4 to $4.28 range if Bitcoin fails to make a sustained move beyond the $100K mark.
Liquidity hunting by market makers is another factor to consider when analyzing SUI’s price action. These market makers typically target areas with high liquidity to influence price movement. In SUI’s case, key liquidation zones have been identified around the $2.8, $3.4, $4, and $4.3 levels. Since the price is currently hovering between $3.4 and $4, the coin could potentially hit these levels first, with $4 acting as a critical resistance point. If SUI can break through this zone, it might experience a more significant upward movement, depending on Bitcoin’s performance.
However, if Bitcoin continues to struggle with volatility and enters a bearish phase, SUI might retest its support levels below $3. This would likely trigger another round of selling pressure, with SUI possibly dipping to lower levels. This scenario highlights the close correlation between SUI’s price movements and Bitcoin’s performance, with Bitcoin playing a pivotal role in determining the short-term direction for Sui.
Looking ahead, the extended recovery for SUI largely hinges on Bitcoin’s ability to gain momentum. If BTC manages to surge past the $100K mark and enters a more bullish phase, SUI could likely break above $4 and continue its recovery toward the $4.28 range. On the other hand, if Bitcoin continues to face resistance and remains in a choppy zone, SUI might struggle to maintain its upward trajectory, potentially leading to another retest of the $3 support level.
In conclusion, while SUI has the potential for further upside, its ability to break through the $4 resistance will be strongly influenced by Bitcoin’s movements. For traders and investors, keeping an eye on Bitcoin’s price action will be key to understanding the likely direction for Sui in the coming weeks. Should Bitcoin stabilize and begin to rally, Sui could see a significant recovery; however, if Bitcoin remains volatile, SUI may continue to consolidate within its current range or face a short-term pullback.
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