- Sui has a bullish daily market structure and remarkable buying pressure.
- The Fib levels and bearish divergence contributed to the rejection.
Sui [SUI] was on a strong bullish run, but recent market-wide volatility marred this. Since September 1, the token is up 131%. It maintained a firm bullish bias on the daily chart.
Trading volume was above average and the structure suggested a continued higher recovery was likely. There was one obstacle in the way of bullish targets at $2 and above.
Stable buying volume and solid accumulation trends
Source: SUI/USDT on TradingView
The daily market structure has been bullish since September 15. This came after a brief price drop to $0.8 was followed by a strong recovery. Trading volume in September was high compared to July and the second half of August. This underlines the bullish belief.
The buyers were able to continue this belief and drive up prices. They reached the $2 level but were hampered by the post-Bitcoin selling pressure [BTC] saw a correction of $66.5k.
The CMF stood at +0.06, while the A/D indicator rose above the March and April highs. Together, they showed that recent buying pressure was strong and September accumulation trends favored the bulls.
The Fibonacci retracement levels are blocking SUI bulls
The daily RSI had formed a bearish divergence on October 2. This happened when the token price reached the resistance level of $1.81, the 78.6% retracement level based on the downtrend Sui saw from April.
The short-term liquidation heatmap data shows that the $1.77 zone is a region of high liquidity. The recent upward move has wiped out this liquidity, reaching the psychological resistance of $2 and is once again below the Fib level.
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The token has a robust bullish structure on the daily chart, but the resistance at $1.81 is crucial. If the bears continue to defend this level, it could evaporate bullish conviction and push prices lower.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
