SUI Drops 8.8% After Bitcoin's Rally, Reclaims Bullish Structure

SUI, a Layer-1 blockchain, has recently shown strong gains, particularly towards the end of April. However, it has since shed 8.8% of its value since May 2, following a swift rally by Bitcoin from $85k to $93k. Despite this, sui reclaimed a bullish market structure on the 1-day chart after surging past the previous lower high at $2.78 on April 23. The altcoin’s bulls have been re-establishing control after retracing almost all of the November rally by April. The market structure break was a strongly bullish sign, even though the $3.5-level was not defended as support.

SUI’s rally over the past ten days saw the Chaikin Money Flow (CMF) poke its head above +0.05, indicating sizeable capital flows into the market. The Money Flow Index (MFI) reflected bullish momentum and did not form a bearish divergence yet on the 1-day timeframe. Together, the indicators and the price action were bullish on the 1-day timeframe. However, a price dip to $3.06, $2.75, and $2.45 may be possible in the coming days, especially alongside the bearish momentum of Bitcoin recently.

Ask Aime: What's next for SUI as Bitcoin cools down?

The 3-month liquidation heatmap revealed that the $3.14 and $3 levels were the immediate liquidity pockets that the price would gravitate towards. Below that, the $2.8-level and the $2.3-level seemed to be magnetic zones. However, these levels might not attract the price strongly. Hence, it may be highly likely that a price move to $3 would occur in the coming days. It could offer a buying opportunity, but cautious traders can gauge the sentiment around BTC before looking to buy SUI. In case of a bullish reversal, the $3.9-level would be a liquidation cluster that bulls might target next.

Analysts have projected that SUI could surpass the $4 mark in the near term, with some even suggesting it could reach $5.30 or $10 in the long run. This optimism is fueled by institutional interest and on-chain momentum, which have reinforced the bullish outlook. However, SUI is approaching critical resistance levels, including the 0.618 Fibonacci level and a key horizontal barrier, which could pose challenges to its upward trajectory. Despite the positive outlook, there are concerns that SUI might face a significant correction. Analysts have identified key support levels at $3, $2.75, and $2.4, suggesting that if the price drops below these levels, SUI could experience a deeper correction. The Relative Strength Index (RSI) and MACD indicators continue to trend upwards, but the market's sentiment remains cautious.

Investors entering the market now are betting on the continuation of the current rally, rather than ground-floor opportunities. The bearish outlook for SUI suggests potential price drops to as low as $3, influenced by regulatory challenges and market volatility. If the selling pressure intensifies and the price drops below the 20-day Exponential Moving Average (EMA), SUI could fall back to the $3 support level, signaling a deeper correction. Analysts have also predicted that SUI could stabilize and potentially rise again if current levels hold, but the market's sentiment remains cautious.

In conclusion, while SUI's price predictions point toward significant gains, the token is approaching critical resistance levels that could pose challenges to its upward trajectory. Investors should carefully consider the risks and opportunities associated with SUI before making any investment decisions.