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Bitcoin [$BTC] was back above the $80k mark to get the weekend off to a bullish start. Many altcoins followed suit and have registered modest gains in the past 24 hours.
Some, like Sui [$SUI], posted double-digit percentage gains and built on the bullish momentum in recent days. The Sui Live event in Miami, hosted by the Sui Foundation, showcased the architecture being built on the chain. It was also a celebration of three years of mainnet.
On Wednesday, the 6th of May, the CME Group announced that Sui futures were available for trading. Positive developments, bullish short-term market sentiment, and increased speculative interest helped keep the altcoin’s momentum up.
$SUI is set to break out of a three-month range
Since February, the $1.05 level has been a resistance that $SUI bulls have struggled to reclaim as support. The brief breakout in March was followed by a bearish structure shift (orange).
Technically, this meant that a daily trading session close above $1.08 is needed to flip the structure bullishly. As things stand, this has not happened.
The OBV did not set remarkable new highs, though the RSI reflected sustained upward momentum in recent days. Taken together, it meant that $SUI bulls have a chance to keep the uptrend going.
The scenarios that would invalidate the uptrend
In a report from a month ago, AMBCrypto highlighted a Sui range formation, one that was still in play. Moreover, the 1-day chart above showed that the long-term structure remained bearish.
Generally, range formations should be respected until the extremes are breached. Therefore, though the $BTC and $SUI momentum can induce FOMO in buyers, they should exercise restraint.
The 4-hour swing structure was bullish, but a push beyond $1.08 would be a welcome sight. The altcoin may retrace to $0.98-$1.03 before such a rally.
Should you buy such a retracement or remain sidelined? It depends on the individual trader’s rules and system, but AMBCrypto’s reading of the situation is that the range needs to be broken before buyers can look to enter.
That means a daily session close above $1.08 is necessary, and patience is required until this outcome is achieved.
A drop below $0.9575 would mean a continuation of the range and signal a potential revisit to the $0.845 range lows.
Final Summary
- Bitcoin’s short-term momentum has given altcoins the room to post modest gains.
- Sui celebrated its third year of mainnet. Combined with the CME Group futures news, the price has been rallying strongly in recent days.