SUI’s Bullish Breakout at Risk, Will Fed Rate Cut Impact Rally?
Zameer Attar18 Sept 20242 min read
Sui (SUI) has experienced a notable price surge in this struggling cryptocurrency market, resulting in a strong resistance breakout of $1.16. Following this breakout, the sentiment for SUI has turned bullish but it appears that a potential rate cut could spoil this positive sentiment.
SUI Price Momentum
On September 18, 2024, SUI initially experienced a notable price surge of over 7%. However, as we come near to the potential Fed rate cut decision, SUI has lost all its gains.
At press time SUI is trading near $1.17 and has experienced a price surge of over 1.5% in the last 24 hours. Besides this, it reached the $1.222 level during the Asian Trading hours but has been continuously falling since then.
During the same period, SUI’s trading volume dropped by 10%, indicating lower participation from traders and investors due to the potential upcoming rate cut in the United States.
SUI Technical Analysis and Upcoming Level
According to expert technical analysis, despite the strong breakout of the $1.16 level, SUI appears weak and may fall in the coming hours or days due to the lower interest from investors and traders. However, SUI is trading above the 200 Exponential Moving Average (EMA), which indicates it is still in an uptrend.
Based on the historical price momentum, there is a strong possibility that SUI price could soar by 20% to the $1.42 level in the coming days. However, this will only happen if SUI closes a daily candle above the $1.20 level, otherwise, it may struggle to reach the $1.40 level.
Decline in Future Open Interest
Currently, SUI’s on-chain metric is flashing a bearish signal. According to the on-chain analytic firm Coinglass, SUI’s Future open interest has dropped by 5.5% over the past 24 hours, indicating weakening interest from investors and traders, potentially due to upcoming events.
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