SUI price jumps after $2.4B inflow – Can bulls crack $2 next?
The 4-hour chart showed short-term bullish momentum. The Fibonacci retracement levels revealed that the current rally could go up to $1.88-$2.
Key Takeaways
Why was Sui rallying?
Sui rebounded from oversold conditions, fueled by the introduction of RWA tokens on-chain and strong stablecoin inflows.
Where will the prices go next?
SUI may climb toward the $2 mark, but its upside appears limited. The broader trend remains bearish, and current demand does not seem strong enough to trigger a full reversal.
Over the past 24 hours, Sui [SUI] witnessed a 10.39% rally and a 68.17% increase in daily trading volume, which stood at $1.06 billion at press time.
This was a considerable portion of its entire market cap of $5.61 billion.
In a post on X (formerly Twitter), analyst Ali Martinez pointed out that Sui had reached a key support level. The wider market must have noticed, if not the X post, then at least that the altcoin was trading at a major trendline support.
Strong stablecoin inflows likely fueled the current short-term rally. Reports indicate that Sui recorded $2.4 billion in inflows over the past 24 hours, far surpassing those seen on other blockchain networks.
News that the R25 protocol was bringing real-world assets to the Sui Network also reinforced the bullish sentiment at the time of writing.
Oversold conditions’ impact on Sui price
The 1-day chart showed that the RSI had dropped to 22.15 on the 22nd of November. Since then, SUI has rallied by 15.7%.
However, the RSI remained at 35 and has only moved out of oversold territory. The OBV was also in a downtrend, capturing seller dominance.
The long-term trend remained firmly bearish, and the swing high at $2.23 was only a lower high in the downtrend. Hence, SUI must move past the $2-$2.23 area to have a chance of establishing a long-term uptrend.
Until then, swing traders and investors can remain bearishly biased. This bounce is for selling until the market shows us otherwise.
The 4-hour chart showed short-term bullish momentum. The Fibonacci retracement levels revealed that the current rally could go up to $1.88-$2 before reversing. Notably, the $2 target coincided with the demand zone from the 1-day timeframe.
Lower-timeframe traders can look to profit from this bounce, but must remember the higher-timeframe trend and take profits accordingly.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
