- At press time, the token was trading a major support level and had crossed a descending trendline.
- On-chain metrics indicated heavy accumulation of SUI by traders, which could push its price higher.
SUI price charts have indicated an impressive performance over the past month, recording gains of 16.6%. At press time, SUI appeared to have entered a new rally, climbing 18.57%. This increase caused its trading volume to increase by 93.54% to $1.1 billion.
The aforementioned rise can be interpreted as a sign of strong market interest. Additionally, this could hint at the potential for sustained bullish momentum.
SUI presents bullish outlook
According to the 4-hour chart, SUI was in bullish territory at press time, as confirmed by a break above the descending trendline that began forming on October 13. This rally was driven by a rebound from the support zone at $1.6049.
If the rally continues higher, SUI could rise as high as $2.3686, marking its October high and the maximum trading level for 2024.
Source: Commercial View
However, if downward pressure resumes, SUI could pull back, potentially extending the downward trend.
Trader Activity Signals Strong Buy for SUI
On-chain analysis by AMBCrypto indicated that SUI is likely to maintain its uptrend, with no imminent signs of a reversal. Data from Coinglass, including open interest and liquidation metrics, also supported the potential for a sustained upward move.
Open interest, which represents the total value of active futures contracts, increased by 17.22% – reaching $519.50 million. This rise highlighted strong demand for long positions, reinforcing bullish sentiment and highlighting the potential for sustained price gains.
Additionally, over $4.14 million in short positions in SUI were liquidated in the past 24 hours as the market moved against those betting on a price decline.
Source: Coinglass
The combination of rising open interest and short liquidations strongly suggests that SUI’s uptrend could see huge momentum in the coming trading sessions.
Conclusions on liquidity flows
Finally, the Chaikin Money Flow (CMF) indicator, which tracks accumulation and distribution based on liquidity flow, implied continued accumulation for SUI.
With CMF in the positive zone with a reading of 0.13, it indicated that SUI price could continue to rise, potentially surpassing its 2024 high.
