- SUI maintained its bullish market structure, but it seemed to be facing a short-term retracement
- Swing traders should keep an eye on the psychological round number support at $3
Sui [SUI] registered strong gains towards the end of April, but it has shed 8.8% since Friday, 2 May. It reclaimed a bullish market structure on the 1-day chart after surging past the previous lower high at $2.78 on 23 April.
Back then, Bitcoin [BTC] had rallied swiftly from $85k to $93k. Over the past few days, however, BTC faced rejection from $97k and SUI followed its downward trajectory.
SUI is likely to fall close to $3 next
Source: SUI/USDT on TradingView
After retracing almost all of the November rally by April, the altcoin’s bulls have been re-establishing control. The market structure break was a strongly bullish sign, even though the $3.5-level was not defended as support.
SUI’s rally of the past ten days saw the CMF poke its head above +0.05 to indicate sizeable capital flows into the market. The 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. 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. Finally, the liquidation heatmap offered more clues about the next SUI move.
Source: Coinglass
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.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion