The post Сloser look at SUI’s price action appeared on BitcoinEthereumNews.com.

Sui has surged by 38.57% since last Friday due to positive market developments and major news. Grayscale Investments launched two new crypto investment trusts, one including Sui, which boosted investor interest. Additionally, macroeconomic factors, such as the market’s recovery from a recent Yen rate hike and a selling spree by Jump Trading, contributed to Sui’s rise (SUI). These factors have led to a strong rally, raising the question of whether Sui can sustain this momentum or if a pullback might occur. Supply dynamics Sui has a high inflation rate, with its supply rising rapidly. This is particularly relevant as token unlocks can lead to downward pressure on the price. Fortunately, the upcoming unlock, which accounts for 2% of the total supply, is still 22 days away. Traders planning to exit before this event may not need to worry about its immediate impact. Downtrend and parallel channel Since late March, Sui has been stuck in a pronounced downtrend, shedding over 61% of its value. From mid-April, the price action formed a parallel channel, which has acted as both support and resistance, containing the price movement within its bounds. At present, Sui is trading near the upper boundary of this channel, where it encounters resistance. A critical support level to watch lies around $0.60, where the midline of the channel coincides with previous historical support. Fibonacci retracements Applying Fibonacci retracement from the March high to the August low, we pinpoint a key resistance level at $0.8681. The level also coincides with the upper boundary of the parallel channel and has historically acted as both support and resistance. Additionally, a convergence of two macro Fibonacci retracements occurs at $0.75: the 78.6% retracement from Sui’s October 2023 low to its March 2024 high and the 23.6% retracement from its initial trading price in May…

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Filed under: News - @ August 11, 2024 1:10 am