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Key takeaways
Why was Sui rallying?
Sui rebounded from oversold conditions, fueled by the introduction of RWA tokens on-chain and strong inflows of stablecoins.
Where will prices go next?
SUI could climb to the $2 mark, but its upside potential appears limited. The overall trend remains bearish and current demand does not appear strong enough to trigger a complete reversal.
Over the past 24 hours, Sui (SUI) saw a 10.39% surge and a 68.17% increase in daily trading volume, which stood at $1.06 billion at press time.
This represented a considerable portion of its total market capitalization of $5.61 billion.
Source: Ali Martinez on X
In an article on X (formerly Twitter), analyst Ali Martinez highlighted that Sui had reached a key support level. The broader market must have noticed, if not post X, then at least that the altcoin was trading on major trendline support.
Strong inflows into stablecoins likely fueled the current near-term rally. Reports indicate that Sui saw $2.4 billion in inflows over the past 24 hours, far surpassing those seen on other blockchain networks.
News that the R25 protocol was bringing real-world assets to the Sui Network also boosted bullish sentiment at the time of writing.
Impact of oversold conditions on the price of Sui
Source: SUI/USDT on TradingView
The 1-day chart shows that the RSI fell to 22.15 on November 22. Since then, SUI has grown by 15.7%.
However, the RSI remained at 35 and only moved out of oversold territory. OBV was also in a downtrend, capturing sellers’ dominance.
The long-term trend remained firmly bearish and the high of $2.23 was just a low in the downtrend. Therefore, SUI must break above the $2 to $2.23 zone to have a chance of establishing a long-term uptrend.
In the meantime, swing traders and investors may remain bearish. This rebound is destined for selling until the market tells us otherwise.
Source: SUI/USDT on TradingView
The 4-hour chart shows short-term bullish momentum. Fibonacci retracement levels revealed that the current rally could reach $1.88 to $2 before reversing. Notably, the $2 target coincided with the demand zone from the one-day time frame.
Traders on lower time frames can look to take advantage of this rebound, but should remember the trend on higher time frames and take profits accordingly.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
