SUI eyes $5 – But first, bulls must break THIS barrier

Key Takeaways

Why is the $3.8 level critical for SUI’s next move?

The $3.8 level is a key resistance point at the convergence of a triangle pattern.

What do Futures and Spot market trends reveal about SUI?

Futures data shows bullish sentiment with long positions dominating, while the Spot market remains cautious.

Sui’s [SUI] prices are once again drawing attention across the larger crypto market by recording an 15% surge over the past two weeks, as of press time.

SUI has climbed back to retest the key $3.80 price level, where a significant resistance zone has formed. 

This barrier aligns with the apex of a triangle pattern that’s been developing over the past several weeks.

While momentum is building, the risk of a retracement remains. 

For traders and investors, this resistance test is pivotal, it could determine whether SUI breaks out for another leg higher or enters a fresh phase of consolidation.

SUI price action gains some momentum

SUI’s price setup is interesting as it follows a recent breakout from a bullish flag pattern. That earlier move helped SUI recover from its late-summer slowdown, putting bulls back in control.

If the token can now close above $3.8 with convincing volume, the next potential rally could easily extend toward the $5 psychological level.

That target also aligns with projections taken from the height of the previous flagpole, giving technical weight to the bullish case.

Source: TradingView

Futures market activity lean bullish as spots step back

Zooming down to the derivatives on chain metrics, CryptoQuant’s 90-day Cumulative Volume Delta data on the Futures market shows a clear tilt toward buyers.

The bulls tend to take the upper hand as long positions appear to dominate.

This suggests that institutional and leveraged traders are betting on a further potential rally, especially with the prices being a whisker away from a successful breakout.

Source: CryptoQuant

In contrast, the spot market reflects a more cautious tone. 

According to AMBCrypto’s recent analysis of Spot Bubble Map data, market activity has been cooling, with noticeable tapering in recent days.

As of press time, retail investors in the spot market were not following the momentum seen in the Futures market. This suggests they may be waiting for confirmation before deploying fresh capital.

The divergence between Futures and Spot flows has left the market in a delicate equilibrium. 

Historically, retail investors tend to be risk-averse, often waiting for clear trends in the Futures market before stepping in.

Source: CryptoQuant

What next for SUI

For now, all eyes remain on the $3.8 level. A sustained breakout above could bring both Spot and Futures markets on the same page, sparking fresh momentum and opening the path to $5 as a result.

But if the triangle resistance level holds strong, SUI price action could be in for more sideways action as the market decides on its next direction.