Key Takeaways
- SUI has broken above the upper trendline of a falling channel and retested $3.
- Open Interest to $514 million, indicating growing capital inflow into the coin.
- The 4-hour chart shows an ascending triangle, with potential for a breakout past $3.83.
Two days after unlocking 44 million tokens, Sui (SUI) has reclaimed $3, validating CCN’s earlier forecast.
While our previous analysis anticipated a short-term dip driven by post-unlock volatility, it also highlighted the potential for a quick recovery.
In the last 24 hours, SUI’s price has increased by 11%, to $3.08. At the same time, market participants may be concerned that the upswing might be a fakeout.
However, this analysis reveals that the altcoin looks ready to negate bearish forces and trade higher.
SUI Holds Strong
SUI has broken out above the upper boundary of a falling channel, signaling a potential shift in trend.
The downward pattern, which began around May 12, saw SUI printing lower highs and lower lows until it reached a local bottom near $2.45 in June.
But since then, buying pressure has picked up.
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At press time, the Relative Strength Index (RSI) has moved above the neutral 50 mark, an early sign that bullish momentum is building.
The RSI gauges market momentum by tracking the speed and magnitude of price changes. When it rises, it typically suggests strength behind a rally.
With momentum now tilting in the bulls’ favor, SUI may find support around the $2.60 level if the RSI continues to climb.
Traders Interest Return
If successful, this could trigger a break toward the $3.50 resistance. A break above this level could also raise SUI’s price in the $4 direction.
A look at SUI’s on-chain condition shows that Open Interest (OI) has increased. OI represents the sum of the value of all open contracts in the market.
An increase in the OI indicates rising buying pressure in the derivatives market. Conversely, a decrease in the metric indicates a rising capital outflow, which is bearish.
Within the last 24 hours, SUI’s OI has moved up from $431 million to $514 million. If sustained, this could help the altcoin avoid another drawdown while SUI’s price might extend its rally.
SUI Price Prediction: Next Leg Higher
On the 4-hour chart, SUI’s price action has formed an ascending triangle. This indicates that the technical setup is bullish, and the token will likely break the resistance at $3.30.
Zooming into the chart, we noticed that the Accumulation/Distribution (A/D) line is rising. This increase indicates that accumulation outweighs distribution.
As such, bulls are dominant while bears are on the back foot. If this trend continues, SUI’s price might decrease to $3.83.
A highly bullish scenario could see the cryptocurrency rise to $4.30. However, this trend might change if distribution outpowers accumulation, and SUI might slide to $2.30.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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