The Cryptocurrency "Sui" In Decline: An Opportunity To Seize? Technical Analysis As Of November 28, 2024

After reaching an all-time high, Sui faced selling pressure that caused its price to drop. Let’s examine the upcoming prospects for SUI.

Sui Situation

After a period of consolidation around $0.90, Sui entered an expansion phase that propelled its price beyond $2. The bullish forecast made in the analysis of September 12 thus materialized. However, Sui did not stop there. Indeed, despite a slight correction upon reaching its last peak, the cryptocurrency managed to rebound around $1.60. It is interesting to note that this price level is now considered a significant value zone. Thus, Sui continued its progression until reaching a new ATH at $3.94, corresponding to the fifth resistance of the pivot points. These fluctuations allowed Sui to appreciate by over 394% in less than three months.

As of the time these lines are written, the price of Sui is trading around $3.46. For the past few days, Sui has been experiencing a gradual decline, questioning the short-term trend of the cryptocurrency. As concerning as this may seem, it should be noted that the medium and long-term trend remains well oriented upwards. This is confirmed by the positioning of the annual VWAP as well as the 50-day and 200-day moving averages, which are still oriented upwards and situated below the current price of Sui. Regarding the dynamics of the cryptocurrency, it remains, unsurprisingly, clearly bullish, despite a recent weakness. This trend is reflected both in the price of Sui and in its oscillators. Although this momentum may seem positive, it is essential to remember that an overly intense movement is often followed by a correction that should be anticipated.

The current technical analysis has been carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Live sessions, educational content, and support regarding financial markets in a professional and warm atmosphere.

Overview of Sui Derivatives (SUI/USDT)

The open interest on SUI/USDT perpetual contracts has evolved in correlation with the appreciation of its underlying asset, reflecting a predominantly buying intent from speculators. These observations are supported by a funding rate that remains positive. However, it is important to note that the latter has recently decreased, accompanied by a CVD that is clearly oriented downwards, suggesting a significant presence of selling interest. Regarding liquidations, they are not particularly marked, although a majority concern short positions. This could reflect a cautious management of positions by traders or a lack of sufficient volatility to trigger massive liquidations.

The heatmap of liquidations on SUI/USDT contracts reveals that a notable liquidation zone was recently reached by the cryptocurrency’s price. Located around $3.10, this zone seems to have sparked buying interest, as evidenced by the price rebound at this level. Now, significant liquidation zones are located on either side of Sui’s current price. Above, the zone between $3.75 and $3.98 can be identified. Below, the key zones are between $2.85 and $2.65, as well as between $2.40 and $2.15. The price approaching these levels could trigger a massive order execution, thus increasing the risk of heightened volatility for the crypto. Therefore, these zones represent a crucial point of interest for investors.

Price Forecast for Sui

• If the price of SUI remains above $3, a break above $3.94 could be considered. The next resistance to watch, in case of a continued bullish movement, would be at the minimum the psychological threshold of $4. Beyond that, targets such as $4.16, $4.43, or even $5 may be reached. At this stage, this would represent an increase of over 45%.

It is important to note that reaching an all-time high makes it more difficult to identify resistance levels.

• If SUI fails to maintain above $3, a drop towards $2.82 could be considered. In the case of a continued bearish movement, the next notable support would be around $2.25. Lower, the support at $1.60 may be tested, which would then represent a drop of about 54%.

Conclusion

Sui has shown significant progress in recent months, despite a recent weakness that questions its short-term trend. The overall dynamics, however, remain positive, supporting growth prospects in the medium and long term. However, it is essential to remain cautious, as rapid rises are often accompanied by correction phases that need to be taken into account. Thus, it will be essential to closely monitor the price reaction at key levels to validate or revise the current forecasts. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can evolve rapidly depending on other more fundamental factors.