SUI’s Sideways Movement
SUI has been in a sideways structure for the past ten days, hitting a short-term supply zone near $4.
Since the liquidation cascade on February 3rd, Sui (SUI) fluctuated between $3 and $4, allowing traders to gain over 20% in either direction by shorting or going long at range highs or lows.
As Bitcoin (BTC) remains in a choppy zone, the question arises: will SUI’s sideways movement continue, or can it surpass the $4 level?
SUI Hits a Short-Term Supply Zone
On the daily chart, SUI’s recent recovery hit the short-term supply zone (red), just below $4. This zone aligns with key moving averages, marking it as a likely profit-taking area for swing traders.
The daily RSI below average suggests SUI may retrace from the $3.5-$4 area back to $3, particularly if BTC continues its choppy movement between $94K and $100K.
In contrast, the 4-hour chart indicates bullish price action above key moving averages for the first time since late January, hinting at potential uptrend momentum.
However, any extended recovery could be capped at $4 or $4.28 if BTC does not surge beyond $100K.
Will SUI Break $4?
Market makers often seek liquidity to influence price action, evident in SUI’s price movements tapping yellow levels (high liquidation zones). On the 2-week chart, key liquidation zones exist at $2.8, $3.4, $4, and $4.3. Given that $3.4 and $4 are closest to the current price action, they may be reached first.
If so, SUI could surpass $4, but the continuation of recovery likely depends on BTC’s upward trend. Conversely, there may be a retest of the support area below $3 if a bearish move impacts the market.
Disclaimer: This information does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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