The cryptocurrency market has been buzzing with anticipation as Sui, a Layer-1 protocol blockchain, is on the verge of reaching its all-time high of $2.18. With the token gaining over 134% in the past month, traders and market veterans closely monitor the price action, speculating whether SUI will push past its previous peak or face resistance. Today, the token trades at $2.09, just shy of its ATH. This price surge follows a bullish trend that has dominated the market in recent weeks, causing the altcoin to emerge as the day’s top gainer.
SUI’s Rise: A Look at Price Action
The recent spike in the cryptocurrency’s value has caught the attention of many, with Monday’s 18% price surge adding to the growing excitement. Over the weekend, SUI bounced off its crucial support level at $1.611, last seen on Thursday, setting the stage for upward momentum.
Moreover, with an 11.51% increase in the previous 24 hours, the token’s market performance has been hard to ignore, placing it at the forefront of today’s altcoin market. This bullish trajectory can be attributed to SUI’s total value locked (TVL) rise, which surged past $1 billion.
This has been further bolstered by Bybit’s Launchpool support for the token, marking it as the first native cryptocurrency on the platform. Daily transactions on the blockchain have also seen a rise, with data from Artemis reporting a 120% increase in October alone, climbing from $4.1 million to $9 million.
Alongside its price surge, SUI’s market capitalization has also seen a jump, now sitting at $5.78 billion, placing it as the 18th largest cryptocurrency by market cap. Similarly, its trading activity has been particularly robust, reaching $1.489 billion—an increase of more than 109%. However, some of this activity can be linked to profit-taking by investors looking to capitalize on the recent price gains.
Technical Indicators Signal Possible Price Correction
Advertisement
The technical indicators for SUI hint at potential price volatility in the short term. Currently, the RSI is sitting at 76.78, well above the threshold of 70, indicating that the token is in overbought territory. Typically, an RSI above 70 suggests that the asset might be due for a correction as investors lock in profits. This could lead to a short-term dip in price as the altcoin stabilizes.
Meanwhile, the MACD presents a more nuanced view. While the MACD line is above the signal line, reflecting continued bullish sentiment, the shrinking green bars on the MACD histogram hint at weakening momentum. Should the trend persist, the MACD could converge toward the zero line, hinting at a bearish shift that may lead to a price drop.
What’s Next for SUI: Bullish Breakout or Pullback?
Market watchers are divided on the token’s next move, with some expecting a retracement before another leg up, while others anticipate a breakout to new heights. Experienced traders are particularly wary of a potential fake breakout. For instance, market analyst Stephan B shares an X post analysis warning traders to avoid becoming “exit liquidity” for bigger players.
Don’t be stupid and offer yourself as exit liquidity.$SUI will give pullback. pic.twitter.com/mYkMx8m4EK
— StefanB (@Stefan_B_Trades) October 7, 2024
The analyst believes SUI might show a fake breakout above the current ATH, tricking inexperienced traders into thinking it’s a clear bullish run. However, he anticipates a pullback will likely follow this surge. According to his projections, the cryptocurrency could drop to support levels in the $1.40 to $1.10 range before potentially bouncing back.
Once SUI finds its footing, Stephan believes the cryptocurrency could retest its previous ATH and might even experience a strong breakout. Such a scenario could see the altcoin reach the 1.272 Fibonacci level at $3.32 during the ongoing October bull run.
Advertisement
Also Read: Early SHIB Whale Swaps $NEIROETH for $NEIRO, Makes $2.67M Profit
