ambcrypto.com
Sui [$SUI] crypto was down 8.76% over the past week and has slid 1.43% in the past 24 hours. By comparison, Bitcoin [BTC] was up 0.5% in 24 hours.
Coinalyze data showed that the spot CVD for the altcoin has been in decline over the past two days. The Open Interest also slid lower as prices fell from $0.72, but the funding rate remained positive.
It showed that market sentiment in the short-term was bearish, but aggressive short selling has not yet commenced. Negative funding rates and rising Open Interest could lead to a price bounce and a short squeeze.
As things stand, there were other threats to traders and investors.
Token unlocks and long-term Sui crypto downtrend loom upon the bulls
The Sui recovery was under pressure. A $SUI token unlock of 13.72 million tokens, worth $9.76 million, will be unlocked on August 1. Over the past 30 days, 22.76 million tokens have already been released in four events.
Unlocks signal supply pressure and potential short-term selling as the tokens become available to early contributors. Moreover, only 40.6% of the vesting schedule is complete, which means there will be more unlocks in the future.
The 1-day swing structure of $SUI crypto was firmly bearish. The latest impulse move downward from $1.42 to $0.65 in May, and early June has set the stage for a potential bounce into the Fibonacci golden pocket between $1.12-$1.25, the 61.8%-78.6% retracement levels.
Over the past two months, the altcoin has been in a consolidation phase.
Traders’ call to action- Watch the range
The past two months’ consolidation had resulted in a $SUI range formation [purple] between $0.70-$0.77. At the time of writing, the altcoin was trading almost exactly at the range lows.
A liquidity sweep toward $0.69 has occurred in recent hours. Another such sweep is possible in the coming days, if $SUI crypto does not react bullishly soon.
As things stand, swing traders can look to buy, targeting the range highs around $0.775. Invalidation of the range formation would occur upon an H4 session close below $0.692.
Final Summary
- The Sui token unlocks and long-term bearish trend is testing investors’ conviction.
- As things stand, swing traders have a chance to buy, anticipating a 10% rally, but a breakout past $1.42 is needed to flip the long-term trend bullishly.