SUI Price Hits Two-month High
While Bitcoin and other leading cryptocurrencies continue to grapple with a bearish correction, SUI has emerged as a standout performer.
Unlike its peers, SUI has not only managed to slow the correction but has also closed above the last key point of the recent slump. This presents investors with a unique opportunity to strengthen their portfolios during the downturn.
Daily time frame analysis
SUIUSD - 1 Day Time Frame
The most critical technical parameter, as highlighted, is SUI's ability to break through the external bearish structure. This breakthrough has potentially paved the way for a bullish trend, reminiscent of the one observed earlier this year.
Despite an almost 80% decline from its peak, it's important to remember that cryptocurrencies are inherently more volatile than traditional assets.
This volatility offers market participants a chance to acquire a fundamentally strong cryptocurrency at a significantly undervalued price, potentially mitigating losses from other coins.
An additional key factor in this analysis is liquidity—specifically, Sell-Side Liquidity (SSL). In this case, SSL was clearly targeted, leading to an impulsive bullish move that displayed much stronger momentum compared to the preceding bearish trend.
When to buy SUI?
For investors, the crucial factor is how the price reacts after testing the support zone, highlighted in blue on the chart. This zone represents an ideal point to accumulate some volume, with a protective Stop Loss (SL) order placed below the external low of the market structure.
If the price closes below this support zone on the daily timeframe, the validity of buy orders will be compromised, warranting a partial sell-off of the position.
However, if the support zone holds, the position can be maintained with a focus on capturing internal and external liquidity.
In conclusion, SUI's resilience during the ongoing market correction makes it a compelling asset for investors looking to capitalize on the current downturn. By closely monitoring key support levels and liquidity dynamics, traders can strategically position themselves to benefit from a potential bullish reversal.
As always, effective risk management is crucial, particularly in the volatile cryptocurrency market.
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