Sui [SUI] crypto has rallied nearly 14% in the past 24 hours as of writing, with a 26% surge in daily trading volume. The Open Interest (OI) behind the altcoin was up by nearly 21%, showing bullish momentum could continue.
Sui crypto has gained 30.2% over the past week. Some analysts believe this is due to capital rotating into Layer 1 tokens. Notably, some of the popular crypto assets in this sector have recently shown strongly bullish trajectories.
So, how much higher can SUI rally?
Sui crypto is about to test the $1 psychological resistance
In August, SUI crypto rallied from $0.635 to $0.954, a 50.14% move in under five days. Since then, the altcoin retraced the move. The price fell as deep as $0.673, just below the 78.6% Fibonacci retracement level.
SUI has recovered from this deep retracement. Once again, the bulls were knocking on the doors of the $0.954 swing high.
The August rally ended a period of consolidation around $0.70 that began in June. The $1.03 and $1.15 were the technical price targets for Sui crypto. On the bright side, the $0.85 supply zone hardly posed an obstacle to the upward momentum.
At the same time, swing traders and investors must remember not to get euphoric. A false breakout past the $1.05 supply zone occurred in May. An unexpected sell-off in the crypto market could spark a similar false breakout.
Why SUI traders must wait for THIS level to be flipped
The technical indicators on the 4-hour timeframe were firmly bullish following the recovery from the 78.6% retracement level. The RSI was in overbought territory, a minor warning of overextended market conditions on this timeframe.
From a price action perspective, the $0.95-$1.05 was a vital zone. If firm demand and market-wide enthusiasm continue, SUI could continue its rally and push higher.
Until then, traders can look to take profits, at least partially, and wait for the next move. A move above $1.05 and a retest of the $0.95-$1.05 area as support would be a good sign for swing investors to look to re-enter the market.
Final Summary
- Sui crypto rallied over 30% in the past week. Market-wide bullish sentiment and Layer 1 sector performance indicated more SUI gains were possible.
- Swing traders can wait for a true breakout past the $1.05 supply zone, a significant area all year, to re-enter the uptrend.