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- SUI has noted gains of 73% in the past three days.
- A drop below $1.245 could see a retracement as deep as $1.
Sui [SUI] was stuck beneath a band of resistance near the $1 mark in late December and early January. Over the past four days of trading, the bulls smashed this resistance to smithereens.
Technical analysis of the token showed that the higher timeframe bias was strongly bullish. On the other hand, the large gains of the past few days could see a major retracement.
The demand in the spot market was weak in recent days, which opened a path for sellers and profit-takers to drive prices toward the $1 support.
Fibonacci levels are of limited help with the SUI price action
Source: SUI/USDT on TradingView
At the time of writing, SUI was trading at $1.2844. It has beaten the $1.245 resistance level from May 2023 on the one-day chart, which is supremely encouraging. The OBV is also in a strong uptrend in the past six weeks.
However, the RSI was at 75 and highlighted overbought conditions. While this does not indicate a retracement is imminent, it showed that market conditions are overheated and a retracement was possible.
The Fibonacci levels showed that the $1.02 and $0.94 levels of support were key. In particular, the $0.94 level was a former support zone in June 2023 that served as resistance a month ago.
Yet, the psychological $1 level is a vital level for bulls to defend, and a retracement to $0.94 might not occur.
The demand for SUI has slowed down
Source: Coinalyze
AMBCrypto’s analysis of the Coinalyze data showed that market sentiment was weakly bearish in the past 24 hours. The Open Interest has fallen from $185 million on 13 January to $157.4 million just over 24 hours later.
The price has stagnated in the $1.25-$1.3 zone. Together they pointed toward cautious futures traders waiting for the next impulse move to enter the market.
How much are 1,10,100 SUI worth today?
The spot CVD saw a large move upward on 11 January, when prices climbed above $1. Since then, the indicator has trended sideways.
The buyers and sellers appeared to have equal strength based on the spot CVD, which meant volatility was likely. A lack of further demand could tip the balance in favor of the sellers.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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