SUI Price Prediction: Golden Cross Could Mark the Beginning of a New Bullish Trend

SUI price dropped 10% in three days after failing to break out of the $3.59 resistance.

The RSI entered overbought territory, almost making a cooldown inevitable as the Relative Strength Index (RSI) moved into overbought territory.

SUI’s broader outlook remains optimistic, with the Chaikin Money Flow (CMF) showing capital inflows and the Money Flow Index (MFI) indicating bullish momentum.

SUI price fell 8.8% since Friday, May 2, signaling a short-term pullback.

After a period of strong gains that saw it rally over 100% from its March lows to hit highs of $3.59 in late April, SUI price is currently testing the $3 psychological level.

This follows a brief rally that saw SUI price surge past the previous lower high at $2.78 on April 23.

Bitcoin’s role in SUI’s recent price action is also a factor to consider.

As Bitcoin faced rejection at the $97,000 level in recent days, SUI has mirrored its downward movement.

SUI’s technical outlook remains bullish, despite the recent price drop.

Several technical indicators suggest that the altcoin could be setting up for a recovery, and there are several key levels to watch.

The Chaikin Money Flow (CMF)

The Chaikin Money Flow (CMF) is a volume-weighted indicator that measures the strength of institutional activity. It ranges from -1 to +1, with readings above +0.05 indicating strong capital inflows and readings below -0.05 suggesting capital outflows.

In the case of SUI, the CMF has pulled back slightly but remains in positive territory. It is currently testing the +0.05 level, which could be crucial for the bulls.

If the CMF can hold above this point and continues to move higher, it would be a bullish sign for SUI price in the coming days and weeks.

Money Flow Index (MFI)

The Money Flow Index (MFI) is a momentum indicator that measures the speed and magnitude of price movements. It is used to identify overbought and oversold conditions, and it can also be applied to detect divergences, which occur when price and an indicator move in opposite directions.

On the daily chart, SUI price is showing signs of an impending golden cross. This pattern occurs when the 50-day exponential moving average (EMA) crosses above the 200-day EMA.

Golden crosses are often seen as bullish signals, especially when they occur after a period of consolidation or a downtrend. They can mark the beginning of a new bull market or a continuation of an existing uptrend.

In the case of SUI, this golden cross could mark the end of the “death cross” phase that has dominated the market for the past seven weeks.

The death cross appeared on February 9, when the 50-day EMA dipped below the 200-day EMA. This pattern is usually viewed as bearish and signals a potential reversal of the bullish trend.

However, recent price action suggests that this transition between market phases could be a healthy part of the broader cycle.

As SUI price dipped below the critical $3.16 support level, the broader market indicators remain favorable for future gains.

Key levels to watch

Investors are closely watching the $3.16 support level. If SUI can maintain this level and regain strength, it could lead to another test of the $3.59 resistance.

Breaking past this point would signal continued upward momentum.

The three-month liquidation heatmap reveals that $3.14 and $3 are immediate liquidity pockets that the price will likely gravitate toward.

Below those levels, $2.8 and $2.3 appear to be magnetic zones, though they may not attract the price as strongly.

If SUI fails to find solid support and continues to fall below $3.16, it could face a deeper correction, potentially heading toward the $2.77 mark.

Such a move would signal a more serious trend reversal and could undermine the current bullish outlook.

In case of a bullish reversal, traders might target the $3.9 level next, which represents a liquidation cluster on the heatmap.

The price dip to around $3 may offer a buying opportunity, but careful traders should monitor Bitcoin’s sentiment before making decisions.

For swing traders, the psychological round number support at $3 is particularly noteworthy, especially in the context of Bitcoin’s recent price action.