15 Jan 2024 Morgan Hayze
SUI Breaches $1, Making Almost An 80 Percent Increase In Three Days
Sui (SUI) was trapped in late December and early January below a zone of resistance around $1. The bulls completely destroyed this resistance in the last four trading days.
The token's technical analysis revealed a significant bullish bias with a longer timeframe. However, there may be a significant pullback of the recent big gains.
Due to recent low demand in the spot market, sellers and profit-seekers have an easier time pushing prices down toward the $1 support level.
At the time of writing, SUI was trading at $1.37. It is really positive that it has overcome the $1.245 resistance level from May 2023 on the one-day chart. The last six weeks have seen a significant increase in the OBV as well.
But the RSI, which was at 75, indicated overbought conditions. This demonstrated that the market is hot and that a retracement is feasible, even though it does not signify an impending retracement.
The $1.02 and $0.94 levels of support were crucial, according to the Fibonacci levels. Specifically, the $0.94 mark represented resistance one month ago and was a previous support zone in June 2023.
Source: TradingView
However, bulls must protect the psychological $1 level, and a retracement to $0.94 may not happen.
There is less demand for SUI now
Is a correction in SUI prices warranted now that they may have overextended?
Based on data from Coinalyze, the market mood for the previous day was somewhat negative. In less than twenty-four hours, the Open Interest dropped from $185 million on January 13 to $157.4 million.
The price has been steady between $1.25 and $1.3. Collectively, they indicated cautious futures traders who were holding out for the next market impulsive move.
On January 11, the spot CVD saw a significant price increase, rising beyond $1. The indication has been trending sideways ever since.
Based on the spot CVD, it appeared that the buyers and sellers were equally strong, indicating that volatility was likely. The balance can shift in the sellers' favor if there is no more demand.
