- SUI‘s price is likely to dip towards $3 due to short-term bearish momentum and liquidity pockets identified at this level.
- Traders should watch Bitcoin’s movements, as a recovery could offer a potential buying opportunity for SUI near $3.
The SUI [SUI] price has been an interesting one to watch lately. After a strong rally in late April, the altcoin has experienced a retracement, losing nearly 8.8% since May 2. Despite its bullish structure, the short-term outlook suggests that SUI could soon test the $3 level, potentially marking a significant buying opportunity for swing traders.
SUI had a solid market structure shift when it surged past its previous lower high at $2.78 on April 23. This rally coincided with a sharp rise in Bitcoin’s price from $85k to $93k. However, the optimism was short-lived as Bitcoin recently faced rejection near $97k, triggering a downward trend that has impacted altcoins like SUI.
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Psychological Support at $3
After reclaiming bullish momentum, SUI saw a market structure break that led to a strong rally. Indicators such as the Chaikin Money Flow (CMF) and the Money Flow Index (MFI) signaled healthy capital inflows and bullish market sentiment. However, the altcoin failed to defend the $3.5 level as support, and there is now a chance that it could dip back to the $3 region in the coming days.
Liquidity Heatmap Points to $3 as the Next Target
The 3-month liquidation heatmap reveals crucial insights into where SUI’s price might gravitate. The heatmap highlights $3.14 and $3 as the immediate liquidity zones, which could act as magnets for the price. If the altcoin approaches these levels, it could trigger buying interest, especially from traders seeking to capitalize on potential support near this psychological round number.
If the $3 support level fails to hold, the next immediate zones to watch will be around $2.8 and $2.3. However, the price is less likely to experience a sharp decline below these levels unless broader market conditions worsen significantly.
Is $3 the New Buying Opportunity for SUI?
While SUI’s recent retracement could prompt concern for some, it might present a buying opportunity for those looking to enter at a lower price. Traders should carefully monitor Bitcoin’s movements as any further bearish pressure could push SUI even closer to its $3 target. Conversely, if the price holds at $3 and Bitcoin recovers, SUI might see another leg up towards $3.9.
In conclusion, while short-term bearish sentiment may prevail, a move to the $3 level seems increasingly likely. Traders should be cautious and watch the broader market dynamics before making any decisive moves.
