The SUI price recently experienced a breakdown below the local support of $1.17, offering sellers significant resistance to pressurize buyers. However, the US Bureau of Labor Statistics released the annual U.S. Consumer Price Index (CPI) inflation for April at 4.9%, which is lower than the market expectation of 5%. This development caused an uptick in the crypto market, allowing the SUI price to reclaim the $1.17 chart level as support, creating a fake breakdown scenario.
In the hourly time frame chart, the SUI price shows a massive breakout from the $1.17 resistance and a significant surge in trading volume (Source- Tradingview). This bullish breakout undermines the earlier breakdown and indicates that buyers are currently driving the market. Aggressive short-sellers who entered at $1.17 may have found themselves trapped by the recent price surge, and their stop losses could bring more buying orders in the market.
If the SUI price can maintain its position above the $1.17 barrier, interested traders can consider this as a long-entry opportunity. With the bullish momentum still in play, the SUI price could see a sharp 8% rise to challenge the next significant resistance of $1.27.
On the technical side, the Relative Strength Index (RSI) slope is back above the midline, reflecting sustained buying pressure in the market. Additionally, with the recent price jump, the SUI price reclaimed the 20 and 50 Exponential Moving Averages (EMAs), offering another confirmation for buyers.
The current market situation presents a spot price of $1.2 with a bullish trend and medium volatility. The resistance levels stand at $1.27 and $1.38, while the support levels are at $1.17 and $1.1.
It’s important to acknowledge that the presented content may include personal opinions and is subject to market conditions. Always conduct your own research before investing in cryptocurrencies, as the author and publication hold no responsibility for personal financial loss.
In conclusion, the SUI price’s recent fake breakdown and subsequent bullish breakout offer a potential long-entry opportunity for traders. The crypto market’s response to the annual U.S. CPI inflation figures demonstrates how external factors can significantly impact price movements. Investors and traders must remain cautious and diligent in their research and analysis to navigate the cryptocurrency market successfully.
Source: Coingape
