In the ongoing market recovery, Sui [SUI] is one of the assets poised for a significant upside rally.
This speculation is based on bullish price action and market sentiment that SUI built during the price drop. It remained stable throughout the market decline.
At the time of writing, SUI experienced a price surge of over 6.50% in the past 24 hours and was trading near the $3.30 level.
Despite this impressive price increase and bullish price action, trader and investor participation remained neutral, resulting in a 5% jump in trading volume.
AMBCrypto's technical analysis suggests SUI is forming a bullish double-bottom pattern and showing a bullish divergence on the daily time frame. Investors and traders often see this as a buy signal.
During the recent price drop, SUI retested the crucial support level of $3 and the 200 Exponential Moving Average (EMA) for the second time. It formed a bullish engulfing candlestick pattern, further strengthening its bullish outlook.
Based on historical price momentum, if SUI holds above the $3 level, it could soar by 24% to reach $4.05.
Despite this bullish price action and ongoing market recovery, long-term holders have been dumping SUI tokens onto exchanges, as reported by the on-chain analytics firm Coinglass.
Exchanges have witnessed an inflow of $6 million worth of SUI tokens in the past 48 hours. This indicates a potential sell-off by long-term holders.
Meanwhile, traders are taking advantage of the current market sentiment, betting on the bullish side.
Current liquidation data, at press time, showed that traders holding long positions are currently dominating the asset, while short-side bets appear to be exhausting.
At press time, $3.11 is an over-leveraged level where bulls have placed $25.50 million worth of long positions. Additionally, $3.389 is another over-leveraged level where traders have held $6.37 million worth of short positions.
However, if market sentiment shifts and the price moves in either direction, these levels will be liquidated.