Technical Analysis

SUI technical analysis: Spot trading focused on $2 support zone

Published: Oct 17, 2024

SUI has shown resilience above $2, hinting at further upside potential. Will the market capitalize on this momentum? Let’s analyze the market’s next move and trading opportunities.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Market context

Last week's weekly candle for SUI has really set the tone for potential upside. The $2 level was breached, marking a significant resistance point where key selling pressure was previously found. While there was a higher probability of the market retracing, it didn't happen, which makes this even more interesting now.

What's crucial going forward is how the market treats $2. A key educational point here is that setting a higher high in price indicates that buyers are willing to pay a higher price. The fact that buying is now occurring above the $2 mark signals demand at that level.

If SUI sustains above $2, this could become the new floor, which is impressive considering its recent performance. SUI has outperformed most other assets over the last couple of months, dominating market attention and performing exceptionally well.

1. A weekly candlestick chart showing SUI-TetherUS price movement with major resistance levels marked and a significant price drop.

Playbook & hypothesis

Resistance is now at the $2.36 mark. Current support is $2. We're seeing some buy-in on the daily timeframe, which will be interesting to monitor.

In the event of a breakdown, $1.8 serves as midterm support, with key support at $1.4 if selling intensifies. But for now, the focus remains on the $2 level.

SUI has captured significant mindshare, leading to strong performance.

With key catalysts discussed in market updates pointing to potential high prices in November, December, and Q1, building spot positions remains attractive. Leverage trading isn't advisable at this point, as the market could experience volatility.

From a broader perspective, the total three market cap is still 85% off all-time highs, meaning there is still potential for capital flow into assets like SUI as attention moves beyond majors and into high-performing alts.

2. Weekly chart of total crypto market cap excluding BTC and ETH, showing a breakout from a descending wedge with target projections.

Key levels

$2.36 (resistance)
$2 (support)
$1.8 (midterm support)
$1.4 (key support)

Risk management

Given SUI's recent performance and the upcoming catalysts, we suggest focusing on spot positions rather than leverage trades. As the total three market caps start to gain traction and Bitcoin dominance potentially decreases, SUI could continue to benefit from market flows. The key question is how much further it can run this cycle, and for long-term holders, accumulating spot positions remains a sound strategy.

3. A daily candlestick chart of SUI-TetherUS showing a pullback from resistance levels with highlighted support zones for potential reversal.

Cryptonary's take

SUI has been one of the best-performing assets in recent months, and the fact that it's holding above $2 suggests strong market demand. If we can sustain above this level, SUI could continue its outperformance, especially as we move into a period of potential market catalysts.

With the total three market cap still significantly off all-time highs, there's room for assets like SUI to see further upside as market dynamics potentially shift. Accumulation here seems wise, but stay cautious with leverage positions, as the market is still in a key phase. This isn't an asset we are invested in or have on CPRO Picks, but here we are highlighting its performance.