As Bitcoin gradually nears the $89,000 mark, the altcoins are gaining momentum. One of the top-performing altcoins is SUI, witnessing an intraday surge of 5.34%. This marks an extension to the 4% surge last night.
With the SUI price action hinting at a rounding bottom breakout, the bulls are ready to challenge the $2.38 supply zone. Will a breakout rally in SUI drive the market price to the $3 mark? Let’s find out.
SUI Breaks Resistance; $3 Target in Sight
In the 4-hour price chart, the short-term recovery in SUI marks a bullish turnaround within a rounding bottom pattern. The recovery run has surpassed the 200 EMA line and has resulted in a bullish crossover in the 20 and 100 EMA lines.
The overall surge in bullish momentum prolongs the positive trend in the MACD and signal lines. Furthermore, the SUI price turnaround has surpassed the 50% Fibonacci level at $2.26.
The neckline of the rounding bottom pattern coincides with the 67.80% Fibonacci level at $2.38. As the bullish trend gains momentum, SUI aims to surpass the short-term resistance level.
Based on the Fibonacci levels, the breakout rally will likely prolong the SUI prices to the previous swing high at $2.78, with the potential to reach the 1.272 level at the $3 mark. On the flip side, the crucial support for SUI remains at $2.26 and $2.13.
Bulls Dominate SUI Derivatives
As the bullish trend in SUI gains momentum, the derivatives market witnesses a surge in long positions. The Coinglass data of long-to-short ratio reflects a massive surge in long positions opening for SUI.
In the past one hour, the long positions account for nearly 55%, driving the long-to-short ratio to 1.2212. This marks an impressive surge in bullish trend, increasing the possibility of a breakout rally.
Furthermore, the recent tweet by Torero Romero highlights an inflow surge in the SUI lending protocols. The SUI lending protocol, NAVI leads the inflow with more than $22 million. This was followed by Suilending accounting an inflow of $9.39 million and scallop inflows for $1.33 million.
