Nov 30, 2024
6thTrade
Key Highlights:
Long vs Short Positions: 68.20% of top SUI traders hold long positions, while 31.80% hold short positions.
Over-Leveraged Traders: The key liquidation levels are at $3.326 on the lower side and $3.538 on the upper side.
Impressive Outperformance: SUI is outperforming major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), with strong bullish momentum on the charts.
Bullish Price Action Pattern: SUI Set for Potential Breakout
SUI, the native token of the Sui network, has formed a bullish flag and pole pattern on the daily chart, signaling the possibility of an imminent breakout. The price action suggests that a break above the $3.5 level could trigger a substantial rally.
Breakout Potential: If SUI successfully breaches and closes a daily candle above the $3.5 resistance level, it could surge by as much as 60%, targeting $5.70 in the near term.
Price Correction: The price action indicates that SUI has already undergone a sufficient correction, setting the stage for further upward momentum.
Technical Indicators Supporting Bullish Outlook
Relative Strength Index (RSI): The RSI stands at 58.60, which is well below the overbought zone, indicating that SUI still has room for further gains.
Volume and Momentum: SUI has displayed strong bullish price action, supported by growing market participation, particularly from traders on Binance.
On-Chain Metrics: Strong Bullish Sentiment
According to data from Coinglass, the Binance SUIUSDT Long/Short ratio is currently at 2.14, reflecting a dominant bullish sentiment among traders.
Long vs Short Positions: 68.20% of traders are holding long positions, while only 31.80% are short. This imbalance suggests that traders are expecting further price increases.
Market Participation: Increased participation in long positions, combined with the bullish flag formation, indicates strong market confidence in SUI’s potential upside.
Key Liquidation Levels and Market Sentiment
Liquidation Zones: Traders are heavily over-leveraged at $3.326 on the lower side and $3.538 on the upper side.
$3.538 Level: If the price rises to $3.538, approximately $22.18 million worth of short positions could be liquidated, fueling further upward momentum.
$3.326 Level: On the flip side, a drop to $3.326 could lead to the liquidation of around $10.50 million worth of long positions, potentially reversing the bullish trend.
Current Price and Market Participation
Current Price: SUI is currently trading at $3.41, having seen a slight decline of over 3.5% in the last 24 hours.
Reduced Trading Volume: Trading volume has dropped by 35%, indicating that traders may be waiting for a breakout before committing further capital.
Conclusion: Can SUI Break Through $3.5?
With strong technical indicators, bullish on-chain metrics, and a clear price action pattern, SUI looks primed for a breakout. If the price breaches the key $3.5 resistance level, a rally toward $5.70 could follow. However, traders should be mindful of the liquidation levels at $3.326 and $3.538, which could influence market sentiment in the short term.
If the bullish momentum holds, SUI has the potential for significant gains, but market participants are likely waiting for confirmation before making their next move.