On the 31st of December, it was reported that Bitwise filed for 11 cryptocurrency ETFs. One of the altcoins included was Sui.
Since then, the token’s price has rallied nearly 19% in three days.
Bitcoin was challenging the $90k resistance zone at the time of writing. The Bitcoin Dominance has fallen noticeably since Tuesday, the 30th of December, a reflection of the relative strength in the altcoin market.
Can this strength last, and will Sui [SUI] embark on a sustained uptrend?
Here’s why Sui can rally another 70%
Source: SUI/USDT on TradingView
The 1-week chart was firmly bearish, but a price bounce was underway. A weekly session close above $1.79 would be a sign that SUI bulls have some temporary control.
This would drive prices toward $2.95 and $3.4. These levels were the key Fibonacci retracement levels overhead.
Neither the momentum nor the buying pressure reflected bullish strength on this timeframe, despite the recent gains.
The possibility of a reversal at the range highs
Source: SUI/USDT on TradingView
The range formation (purple) has its high at $1.68, and SUI was trading above it at the time of writing. A daily session close above the range extreme would be a strong sign of bullish conviction.
Failure to exit the range could be an early warning of bearish strength and an incoming rejection. As things stand, this outcome appears less likely.
Traders’ call to action- Buy the breakout
The OBV was attempting to climb higher, and the Awesome Oscillator had already made a bullish crossover, indicating rising demand and momentum. Bitcoin [BTC] has also scaled the local resistance at $90k, fueling bullish conviction across the market.
As the weekly chart showed, traders can buy the breakout and eye ambitious targets such as $3.40.
Final Thoughts
- The Sui rally was likely a result of the Bitwise spot ETF application news as well as the Bitcoin bounce.
- A breakout past $1.68 could take Sui to $2 next, and possibly as high as $3.40 in the coming weeks.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Source: https://ambcrypto.com/decoding-suis-price-action-why-a-1-68-breakout-could-extend-toward/
