- Asset has been retesting a key level that will determine whether it records a significant market run or not
- Liquidity flows and demand have remained high across the market
After several days of depreciation on the charts, SUI may be beginning to regain some strength. In fact, it recorded a gradual hike of 4.23% in the last 24 hours.
Now, the possibility of a major rally remains high, but it depends on market momentum and the asset’s ability to breach a key resistance level. Here’s AMBCrypto’s analysis of how SUI is likely to react at this level.
Bullish tendency surfaces again for SUI
SUI has shown another bullish tendency on the chart, forming a price pattern often associated with a rally.
At the time of writing, SUI was attempting to break through two resistance levels – The descending resistance line and the horizontal resistance at 2.2271. If it succeeds, the asset could rally by 130% to $5.1, a region it last traded in January this year.
Source: TradingView
However, if it fails to breach these resistance levels, as it did in a previous attempt (circled in yellow), the asset may decline again and continue to consolidate lower on the chart.
Further analysis showed that this time, buying interest has been strong. And, the potential for a rally remains solid.
The Bull Bear Power (BBP) indicator, which measures whether buyers (bulls) or sellers (bears) control the market, also revealed that bulls are currently in charge.
This bullish control followed four days of bearish activity that pushed the asset lower. A closer look at the price action during that period revealed that SUI did not fall sharply. Instead, it consolidated and hinted at underlying bullish strength.
Source: TradingView
If the bulls maintain control and the green histogram bars continue to climb, SUI is likely to break its resistance and rally.
Additionally, liquidity inflows have increased, with the same confirmed by the Money Flow Index having a value of 64.49 in the positive zone. This trend pointed to growing capital inflows – A historic signal for a potential rally.
On-chain retention remains high
Finally, on-chain retention for SUI has remained strong, with both new and returning users (addresses) remaining elevated.
At press time, daily active addresses for new users had reached 1.3 million, while returning addresses rose to 299,000 – Up from 1.1 million and 165,800 on 15 April. Such user growth increases the likelihood of higher network usage, something that may contribute to an uptrend in price.
Source: Artemis
SUI’s usage is also set to increase, as it recorded the highest amount of stablecoin deployment among all chains in the last 24 hours – Totaling $60 million.
Overall, these positive developments increase the chances of SUI recording significant upside and delivering more market value than before.
