- SUI was leading the crypto market recovery with a 16% rise in 24 hours.
- High market interest could see SUI break out of an ascending triangle pattern as open interest reached a five-month high.
The cryptocurrency market rebounded on Thursday, with Bitcoin [BTC] edging above $58,000 as traders reacted to the news of cooling US inflation. Sui Network [SUI] led the gains with a 16% increase to trade at $1.03 at the time of writing.
SUI’s gains came amid high market interest in the altcoin. Data from CoinMarketCap showed that trading volumes have soared by 53% as of press time.
SUI’s bullish breakout
The surge in SUI trading volumes came as the price touched the upper boundary of the ascending triangle pattern on the one-day chart.
The volume profile indicator shows a cluster of trading volumes at the breakout price, which is also a key resistance level. This suggests traders are willing to buy SUI at a premium, reflecting their confidence in the uptrend.
Source: TradingView
SUI price was also above the Point of Control (POC) line, which strengthens the bullish thesis as buyers dominate in this range.
The Relative Strength Index (RSI) at 64 shows that despite the influx of buyers, SUI is not yet overbought, and there is room for further growth.
The uptrend will face potential resistance at $1.17. As seen in the volume data, there were significantly fewer traders clustered at this price, which could result in a consolidation.
Separately, $1.17 was also a strong barrier as data from Hyblock Capital shows that there is an influx of liquidation orders at this price. If SUI approaches this level, the uptrend could weaken unless the buying momentum remains strong.
Source: Hyblock Capital
Open interest hits highest level since March
The derivatives market showed rising interest in SUI. Data from Coinglass revealed that open interest rose by more than 30% within 24 hours from $217 million to $270 million at press time.
SUI’s open interest is currently at the highest level in five months. This signals that there is growing confidence in the current uptrend as traders create new positions.
Source: Coinglass
Realistic or not, here’s SUI market cap in BTC’s terms
Given that funding rates have also flipped positive, the higher OI suggests that traders are increasing their long positions on SUI. This confirms the bullish sentiment that the token is headed for more gains.
Furthermore, the long/short ratio has made a significant jump to the highest level in weeks, which indicates more traders are making bets on the price rising.
Source: Coinglass
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