- The daily market structure has shifted recently.
- The retracement phase could take a few weeks to play out if SUI can’t reclaim $1.
An analysis of Sui [SUI] showed bullish short-term signals and that a 9% move higher was possible. The network’s Total Value Locked (TVL) grew and surpassed the $600 million and the news buoyed investors.
Network users are also likely to be enthused by the high transaction speed and the rising prices reflect growing conviction in the token. However, there are some hurdles in the way for long-term holders.
Bearish structure break promises a partial retracement
Source: SUI/USDT on TradingView
On the 10th of August, the market structure on the daily chart shifted bullishly after SUI climbed above $0.902. The move rose to $1.11, nearly retesting the resistance zone from May. Since then, the token saw some retracement.
The market structure flipped bearishly on the 31st of August to show that a retracement phase was likely upon us. The $0.9-$0.93 zone is a short-term target before further losses.
The daily RSI was at 49.9 to show momentum was neutral. It fell bearishly during the market structure break. Meanwhile the OBV did not maintain the highs it claimed in August.
This showed that traders were not confident of a sustained rally. The Fibonacci retracement levels at $0.6 and $0.712 are the next target levels.
Spot CVD uptick supports the idea of a price bounce
Source: Coinalyze
Over the past two days, the price bounce from $0.75 to $0.83 was accompanied by an increase in Open Interest of nearly $20 million.
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This showed that speculators were willing to go long on SUI, expecting profits.
The spot CVD began to climb higher in the past 24 hours. Hence, a bounce to the $0.9 local resistance zone appeared likely. Whether bulls would face rejection there remains to be seen.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
