SUI price tests the $0.89 moving average level as traders analyze liquidation events, falling volumes, and a possible move towards $1.00.
Key Insights:
- SUI has moved back to its 200-day moving average at $0.89 after surpassing the level in September.
- The liquidation events seen in September and October are a sign of volatility in the leveraged trading market.
- Maintaining above $0.89 could help SUI recover to $1.00, whereas a failure below could reveal the $0.80 level.
- Falling trading volumes create doubts about the current recovery move.
Approaching An Important Technical Level For SUI
The current technical pullback in SUI is placing it at an important technical level, with the 200-day moving average becoming significant following the recent rise above it. The token has risen to test the $0.89 range as it makes a comeback following its September move. This price move has made the question of support at the moving average critical.
CryptoBullet Draws Comparison Between Present Retest And Rejection In May
CryptoBullet has pointed out the contrast between the present moving average test of SUI and its prior attempt from May.
Back then, SUI came close to its 200-day moving average before being rejected. The May advance took the coin close to $1.40, though sellers ultimately managed to take control.
By the time June rolled around, the coin had lost most of the gains it made previously. Trade activity was low all summer long, with several failed attempts at higher prices.
The situation changed for the better in September as buyers began to dominate again. SUI advanced beyond its downtrend line of the 200-day moving average and kept advancing until October, when it touched $1.30. Now, CryptoBullet is treating the retreat to $0.89 as a support test.
Liquidation Data Reveals New Action From Leveraged Traders
The liquidation chart is a further point to consider in the volatility seen recently in SUI. This liquidation chart monitors the liquidation of leveraged long and short trades, where long liquidations are denoted by green bars and short liquidations by red bars.
Source: Coinglass
In early May, the biggest noticeable liquidation was experienced, marked by a red bar close to $19.76 million on about May 10. Several green bars close to $9.88 million were experienced from late May to June.
There was not much going on in terms of liquidations from mid-June up until August, as the price of SUI was oscillating between $0.70 and $0.80.
In September, there were a number of liquidation spikes occurring between September 18 and October 8.
SUI Price Depends On $0.89
On the intraday chart, the price of SUI is at $0.8951, which is 1.15% higher for today. The intraday low was made at $0.876, followed by a recovery to nearly $0.912.
Source: CoinMarketCap
But there has been a new drop after sellers entered again around the level of $0.910 to $0.912. Support levels between $0.880 and $0.882 have to be considered.
Volume is one more problem. The reported 24-hour trading volume dropped by 52.78% against the provided market data, which means that the price recovery was not supported by volume.
If the price is higher than $0.900, the recovery becomes more likely, and in that case, the target level is $1.00. Of course, October's high is between $1.25 and $1.30.
A daily close below the 200-day moving average will be bearish and will open the area around $0.80 for the price. At least for the moment, it is needed to see if buyers can defend $0.89 and hold this recovery.
