SUI encounters resistance: Will the bulls hold or is a retracement looming?

• SUI demand gets tested as price pushes into resistance zone.
• Evaluating the likelihood of price pushing above the $1.

It’s almost a week since Grayscale announced the launch of a new  Sui [SUI] Fund. The market reacted positively to the announcement, resulting in a bullish uptick for the cryptocurrency.

The development certainly created a lot of excitement judging by SUI price action. The cryptocurrency has so far rallied by over 100% from its bottom range in July.

Bullish expectations have encouraged a surge in leveraged long positions, that may be detrimental in the short-term. Recent findings reveal a surge in long liquidations worth as much as $19.52 million.

SUI has been eying the $1 price tag but has recently been experiencing resistance between the $0.95 and $0.96 price level.

This, combined with the long liquidations suggests that breaking above $1 might not be a walk in the park. It also signals the possibility of profit-taking since the cryptocurrency is now in a historic resistance zone.

Source: Tradingview

Despite the new found resistance, SUI bulls may still have a chance to succeed in their attempt. The RSI still had some wiggle room before entering overbought territory.

If the bulls can sum up enough momentum this week. If an extended bullish momentum plays out, the next expected resistance zone is near the $1.17 price range.

The impact of the liquidations did not indicate significant sell side exposure at the time of observation. This was in line with some key metrics such as the whale versus retail delta (WRD). The latter maintained above zero for the last 5 days.

Source: TradingView

The WRD scored 15 points in the last 24 hours. This suggests that whales currently have more long exposure. This may explain why the price maintained resistance against the downside in the last 3 days.

Another key observation that supported the possibility of more upside was the uptrend in the accumulation/distribution indicator. It peaked at 1.05 billion at press time, suggesting that the SUI market was still in favor of the bulls.

Source: TradingView

Based on these findings, we concluded that SUI had a high probability of pushing above the $1 price level in the short term. Its impressive performance is indicative of the excitement around the Grayscale announcement.

Realistic or not, here’s SUI market cap in BTC’s terms

Nevertheless, there are interesting potential outcomes to note.

SUI’s current rally may soon be subject to profit-taking and a pullback if the overall crypto sentiment remains weak. However, if the sentiment improves, SUI bulls may extend their reign.