SUI has emerged as a noteworthy contender in the cryptocurrency market, captivating traders with its recent price behavior. Despite experiencing a 4.89% decline in the past 24 hours, the token has impressively secured a 24.75% gain over the past month, indicating a strong bullish momentum in the overall trend.
Currently positioned within a symmetrical triangle pattern, SUI seems ready for an impending price breakout. Should market conditions favor the token, SUI could potentially race toward its next milestone of $4.96.
Symmetrical Triangle: A Setup for Growth?
Analyzing the 4-hour chart, SUI’s price dynamics illustrate a symmetrical triangle. This technical formation consists of two converging trendlines: the upper trendline signifies resistance while the lower serves as support. Typically, this pattern embodies market indecision, often culminating in a breakout.
For SUI, the forthcoming moves depend on its ability to establish a solid support base. Two pivotal levels are worth monitoring:
Lower Trendline Support: SUI may test the lower boundary of the triangle, seeking validation of support before making an upward leap.
Historical Support at $3.926: A dip to this level could provide the necessary groundwork for a vigorous rally, setting the stage for a rise towards $4.96.
If SUI breaks through the triangle’s upper resistance, it could indicate the onset of a bullish phase, driving the price higher in the near term.
On-Chain Data Backs a Bullish Outlook
Reinforcing the bullish sentiment is the Exchange Net flow metric, which reveals a consistent outflow of SUI tokens. In recent days, approximately $26 million worth of SUI has been withdrawn from various exchanges, with $7.11 million occurring in the last 24 hours alone.
This negative net outflow typically suggests diminished selling pressure as traders withdraw their tokens to hold them long-term. Such a trend could limit the circulating supply of SUI, paving the way for upward price movement.
Short-Term Challenges Amid Bullish Potential
While the longer-term trend appears optimistic, some short-term challenges must be acknowledged:
Open Interest Decline: SUI’s Open Interest (OI) in derivatives markets has decreased by 5.68% over the past 24 hours, bringing it down to $677.82 million. A dip in OI signals declining market participation, with fewer traders holding active contracts.
Falling Trading Volume: SUI’s trading volume has also plummeted, experiencing a 48.84% drop to $1.15 billion. This reduction in trading activity could reflect a cautious sentiment among traders, possibly resulting in short-term price dips.
These indicators imply that SUI may need to consolidate further before achieving a sustained breakout.
SUI Surpasses Shiba Inu in Market Cap
In an intriguing development, SUI has now eclipsed Shiba Inu (SHIB) in market capitalization. Currently, SUI stands at a $12.54 billion market cap, narrowly edging past SHIB, which sits at $12.45 billion.
This accomplishment highlights SUI’s rising stature in the cryptocurrency space. Should the token maintain its upward trend, the distance between SUI and SHIB could widen, solidifying SUI’s place among the top assets.
What’s Next for SUI?
With its symmetrical triangle pattern and solid on-chain metrics, SUI shows promise for a bullish breakout. However, the recent declines in Open Interest and trading volume suggest that the token may first need to test lower support levels.
For both investors and traders, the $3.926 support level and the breakout direction from the triangle will be crucial indicators to watch. If SUI successfully surpasses its resistance, targeting $4.96, it could further bolster its bullish momentum.
As SUI sustains its market presence, its long-term prospects appear increasingly favorable, making it an asset worth monitoring closely.
