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Key Takeaways
Sui has a bullish structure in the long-term, and in the short-term, the bulls target a move to and beyond the $4 resistance. This could be tough since buying volume has been muted in the past few days.
Sui [SUI] token saw a 30% increase in the daily trading volume, according to CoinMarketCap data. The altcoin had managed to climb above the short-term resistance at $3.5 and was headed to the $4 resistance.
Technical analysis showed that SUI did not have high buying pressure behind it in recent days. Therefore, the breakout past $4 was made less likely. Bullish strength for Bitcoin [BTC] could help Sui sentiment.
Source: SUI/USDT on TradingView
The swing structure of SUI has been bullish since late 2024. The deep retracement from January to April 2024 did not breach the $1.6 swing low, keeping the bullish structure intact.
At the time of writing, the local resistance at $4.44 should be the hardest obstacle overhead. The move past $3.5 showed momentum was moving in favor of the bulls. However, the buying pressure has not been high.
The trading volume over the past two weeks has been below average, and the OBV was only slightly higher than the lows it made at the beginning of September.
Trading volume needs to increase to instill deeper confidence among investors and traders.
Will SUI face rejection at $4?
Source: SUI/USDT on TradingView
Zooming in on the 6-hour timeframe, the Fixed Range Volume Profile provided some clues on where SUI prices could go next.
Measured from the rally that began in the latter half of June, the FRVP showed that Sui bulls were driving the price toward the Value Area High at $4.
The $4 level was also a psychological round-number resistance. This confluence, combined with the minimal buying volume in September, meant that a breakout could take time.
Hence, traders can watch out for a rejection from the $4 supply zone.
In that scenario, a retracement to the $3.5 support, which was the Point of Control (red), can be expected.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
