SUI has bounced back after experiencing an unusual reaction in the cryptocurrency market. Several reports stated there was a temporary outage at the SUI network. Although this caused some confusion in the price movement of the coin initially, it seems that traders have turned their attention back towards buying SUI on technical implications rather than the negative news announcements.
SUI Shows Strong Recovery Signs as Price Stabilizes Around $1.85. At press time, the coin is trading at $1.82 without any price changes over the past 24 hours.
SUI Builds Recovery Structure
The daily chart for SUI on TradingView shows that the price is trading around $1.85, after bouncing off its support zone at around $1.58-$1.60. A price point that has acted as a major buying zone since December of last year. Although the coin has not fully recovered yet, the price has recorded a series of higher lows, indicating that a recovery is taking place.
Now the coin trades under its 200-day moving average, located at $2.72, suggesting that sellers still remain in control of the long term direction.
However, the coin is currently attempting to stabilise above its 50-day moving average, which tends to be a zone where buyers enter during changes in trend direction. Momentum indicators, including the Relative Strength Index (RSI) at 14 periods, currently indicate the expected change to an upward trend due to their overbought levels.
If it can remain above the $1.80 level, then it will continue to solidify its recovery structure. If the coin were to break through the $2.00 price point, it would represent a key technical milestone and set the stage for SUI to reach higher price resistance areas.
Also Read: Sui (SUI) Shows Signs of Recovery as Price Eyes $2.35 After Reclaiming Key Support
Price Increase Despite Network Outage
Analyst Ted Pillows recently updated on X that it is somewhat “ironic” to see the coin price rising during a reported “network outage” as this type of price action only happens “in crypto”.
From the 1-hour chart, the price of the coin formed a very strong bullish breakout from its prior price levels near $1.92-$1.94 with increasing volume and a bullish crossover of the MACD indicator. These two validation metrics indicate aggressive accumulation by dip-buyers, but volatility was still elevated at the time of the price breakout.
In conclusion, while the price action of the coin is positive toward the momentum in the short term (increased momentum), it has also experienced some long-term resistance and volatility created by outside factors or events. For this reason, to determine whether it will continue to move higher, it will need to remain above the key support level.
Also Read: SUI Price Analysis: Momentum Builds Toward $5 Higher Highs
