Date: Tue, Nov 26, 2024, 06:22 PM GMT
After a sharp correction earlier today, the cryptocurrency market is showing signs of recovery. While Bitcoin (BTC) dropped by over 3% to hover around the $92,000 mark, several Layer-1 tokens are defying the trend. Fantom (FTM) and Sei (SEI) posted impressive gains, and now Sui (SUI) is also joining the recovery rally, surging over 6% to currently trade at $3.38.
Source: Coinmarketcap
DEX Trading Volume Milestone
In a significant development, Sui Network surpassed $32 billion in cumulative decentralized exchange (DEX) trading volume today. This represents a year-to-date growth of $29.92 billion, showcasing the network’s increasing adoption and the growing interest in its decentralized ecosystem.
Source: @Torero_Romero (X)
This milestone underscores the robust on-chain activity driving Sui's network expansion, further solidifying its position as a key player in the Layer-1 blockchain space. Such strong fundamentals are providing a solid base for SUI’s price to recover amid broader market corrections.
Is a Breakout on the Horizon?
On the 4-hour chart, $SUI is consolidating within a descending channel pattern, trading around $3.40. This pattern indicates that SUI is in a temporary pullback phase, and a breakout from the channel could signal a strong reversal rally.
Breakout Potential
If SUI breaks above the upper trendline of the descending channel, it could trigger a bullish reversal. The next major resistance level lies at $3.97, offering a potential 16% upside from the current price.
Beyond $3.97, the token could target $4.20, which would further confirm a strong uptrend.
Support Level
The lower boundary of the descending channel, around $3.00, acts as key support, helping to prevent further declines.
A break below this level could push SUI toward the $2.84 support zone, which has historically attracted significant buying interest.
RSI Analysis
The Relative Strength Index (RSI) on the 4-hour timeframe is currently at 51, indicating neutral conditions.
What’s Next for SUI?
With its strong fundamentals, including today’s DEX trading volume milestone, and a promising technical setup, SUI is showing potential for a breakout. Traders should keep a close eye on the upper trendline of the descending channel, as clearing this could lead to a sustained bullish rally.
However, the descending channel and neutral RSI suggest that SUI may consolidate further before making a decisive move. The next few trading sessions will be crucial in determining whether the token can break out of its current range or face renewed downward pressure.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
