TLDR
- SUI has rallied 112% since hitting April lows but has shed 8.8% since May 2
- Liquidation heatmap shows $3.14 and $3 are immediate liquidity pockets the price may gravitate toward
- Technical indicators like RSI and MACD are trending upward with no bearish divergence yet
- SUI is approaching critical resistance at the $4 level
- A correction may follow the current rally, with potential support at $3, $2.75, and $2.45
SUI, the native token of the Sui blockchain, has been on a roller coaster ride in recent weeks. After registering strong gains toward the end of April, the altcoin has shed 8.8% since Friday, May 2. Despite this short-term setback, SUI has maintained its bullish market structure on the daily chart.
The cryptocurrency reclaimed a bullish stance after surging past the previous lower high at $2.78 on April 23. This coincided with Bitcoin’s swift rally from $85,000 to $93,000. However, as Bitcoin faced rejection from the $97,000 level over the past few days, SUI followed its downward trajectory.
Looking at the daily chart, SUI’s recent performance shows bullish signs. The Chaikin Money Flow (CMF) indicator pushed above +0.05, suggesting substantial capital inflows into the market. Similarly, the Money Flow Index (MFI) reflected positive momentum without forming a bearish divergence on the daily timeframe.
After retracing almost all of its November rally by April, SUI’s bulls have been working to re-establish control. The market structure break was a strongly bullish indicator, even though the $3.5 level was not defended as support.
Price Targets and Support Levels
The three-month liquidation heatmap reveals that $3.14 and $3 are immediate liquidity pockets that the price will likely gravitate toward. Below these levels, the $2.8 and $2.3 zones appear to be magnetic, though they might not attract the price as strongly.
This suggests a price move to $3 could occur in the coming days. This dip might offer a buying opportunity, but cautious traders should assess Bitcoin’s sentiment before looking to buy SUI.
Should a bullish reversal occur, the $3.9 level represents a liquidation cluster that bulls might target next. Looking higher, SUI is approaching a critical confluence of resistance levels near $4, which coincides with the 0.618 Fibonacci retracement level.
The daily chart analysis shows that SUI’s April rally began with a deviation below the $2.06 horizontal area. After creating a higher low inside this area, SUI broke out from a descending resistance trend line that had existed since its all-time high.
This breakout is a strong signal that SUI’s correction phase may be over. A breakout and retest of the $3.25 horizontal resistance area further strengthened this sentiment.
Technical Indicators Support the Rally
Technical indicators validate the ongoing rally. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) generated bullish divergences before the breakout. Both indicators are trending upward, and neither has generated any bearish divergence yet, suggesting the price prediction remains bullish.
In wave analysis, SUI appears to have completed wave four and is now in its fifth and final upward movement. If this count is accurate, wave five could end near $4, a target created by giving wave five the same length as wave one and by the 1.27 external Fibonacci retracement of wave four.
If an extension occurs, SUI’s wave five could reach $4.11, hitting the 1.61 external Fibonacci retracement resistance. A bearish divergence is brewing in the RSI and MACD, supporting the conclusion of this increase.
SUI’s trend in April was extremely bullish, leading to a 115% price increase and a high of $3.84. After a short correction, SUI seems to have regained momentum and is completing its final leg up.
The price could increase to the $4-$4.17 range before beginning a downward movement. A price dip to $3.06, $2.75, and $2.45 may be possible in the coming days, especially if Bitcoin continues its recent bearish momentum.
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