SUI, the Native Token of the Sui Blockchain, Has Been on a Roller Coaster Ride in Recent Weeks

SUI, the native token of the Sui blockchain, has been heating up, especially after a recent rally that saw it surge past the previous lower high at $2.78 on April 23.

This coincided with Bitcoin's swift rally from $85,000 to $93,000. However, as Bitcoin faced rejection from the $97,000 level over the past few days, SUI followed its trajectory downward.

As the dust settles on April's cryptocurrency market, one token that has shown promise despite recent setbacks is SUI. The cryptocurrency reclaimed a bullish market structure on the daily chart after surging past the previous lower high at $2.78 on April 23.

This coincided with Bitcoin's swift rally from $85,000 to $93,000. However, as the king coin faced rejection from the $97,000 level over the past few days, SUI followed its trajectory downward.

This move lower also saw SUI price drop to a new price support zone. The lower price zone also saw the Chaikin Money Flow (CMF) indicator push above +0.05.

The CMF is an indicator that measures the capital flowing into and out of a security. Values above +0.05 suggest that more capital is flowing into the market than out of it, which can be a bullish sign.

The Money Flow Index (MFI) also reflected positive momentum without forming a bearish divergence on the daily timeframe. This occurs when an indicator shows momentum in one direction, but the price moves in the opposite direction.

After retracing almost all of its November rally by April, SUI bulls have been working to re-establish control. The market structure break was a strongly bullish indicator, even though the $3.5 level was not defended as support.

This technical analysis is based on observations and patterns, and there are no guarantees for future price movements. Traders and investors are advised to conduct their own research and due diligence before making any trading decisions.

As SUI price continues to decline, it will likely encounter a confluence of price support levels. According to the three-month liquidation heatmap, $3.14 and $3 are immediate liquidity pockets that the price will gravitate toward.

After these levels, the price may find support at $2.8 and $2.3 zones, which are also marked by high seller activity. However, these lower levels might not attract the price as strongly as the upper zones.

This analysis suggests that a price move to $3 could occur in the coming days. This dip might offer a buying opportunity, but traders are advised to assess Bitcoin's sentiment before looking to buy SUI.

If a bullish reversal occurs, the $3.9 level represents a liquidation cluster that bulls might target next. Looking higher, S, is approaching a critical confluence of resistance levels near $4, which coincides with the 0.618 Fibonacci retracement level.

The daily chart analysis shows that SUI's April rally began with a deviation below the $2.06 horizontal area. After creating a higher low inside this area, SUI broke out from a descending resistance trend line that had existed since its all-time high.

This breakout is a strong signal that SUI's correction phase may be over. A breakout and retest of the $3.25 horizontal resistance area further strengthened this sentiment.

Technical indicators validate the ongoing rally. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) generated bullish divergences before the breakout. Both indicators are trending upward, and neither has generated any bearish divergence yet, suggesting the price prediction remains bullish.

In wave analysis, SUI appears to have completed wave four and is now in its fifth and final upward movement. If this count is correct, wave five could end near $4, a target created by giving wave five the same length as wave one and by the 1.27 external Fibonacci retracement of wave four.

If an extension occurs, SUI's wave five could reach $4.11, hitting the 1.61 external Fibonacci retracement resistance. A bearish divergence is brewing in the RSI and MACD, which supports the conclusion of this increase.

SUI's trend in April was extremely bullish, leading to a 115% price increase and a high of $3.84. After a short correction, SUI seems to have regained momentum and is completing its final leg up.

The price could increase to the $4-$4.17 range before beginning a downward movement. A price dip to $3.06, $2.75, and $2.45 may be possible in the coming days, especially if Bitcoin continues its recent bearish momentum.