Journalist
Posted:
- SUI has been in a sideways sideway structure for the past ten days.
- The altcoin hit a short-term supply zone near $4.
Since the liquidation cascade on the 3rd of February, Sui [SUI] has fluctuated between $3 and $4. This has allowed traders to bag over 20% gains in either direction, whether shorting or going long at the range of highs or lows.
As Bitcoin [BTC] remains in a choppy zone, will SUI’s sideway structure extend, or can it top the $4 level?
SUI hits a short-term supply zone
Source: SUI/USDT, TradingView
On the daily chart, the recent SUI recovery hit the short-term supply zone (red), just below $4. This supply zone aligned with key moving averages, reinforcing it as a likely profit-taking area for swing traders.
Given the daily RSI was below average, SUI could retrace from the $3.5-$4 area to $3 again, especially if BTC remains choppy between $94K-$100K.
However, the lower timeframe painted a different picture. The 4-hour chart showed bullish price action above key moving averages for the first time since late January.
Source: SUI/USDT, TradingView
While this suggested potential uptrend momentum in the lower timeframe, the extended recovery could be capped at $4 or $4.28 if BTC fails to surge beyond $100K.
Will SUI blast $4?
Source: Coinglass
Market makers typically hunt for liquidity and influence price action. A similar scenario was evident with SUI, as seen by the price action tapping yellow levels (high liquidation zones).
On the 2-week chart, the key liquidation zones were at $2.8, $3.4, $4, and $4.3. Since $3.4 and $4 are the closest pools within the current price action, they could be hit first. If so, SUI could top $4, but the extended recovery could depend on BTC’s uptrend.
Alternatively, the support area below $3 could be retested if another bearish move hits the market.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
