Key Insights:
- SUI’s head and shoulders pattern suggests a potential bearish breakdown.
- A drop below $3.00 could confirm the pattern, targeting $1.60.
- Holding $3.30 support may lead to a $3.60-$3.80 retest.
Sui (SUI) price recently traded near a critical price level. Following this, market analysts seek bearish signals that could lead to further downside.
According to Ali, SUI has formed a head and shoulders pattern, a well-known bearish reversal setup. If confirmed, this pattern could trigger a significant price drop.
The token was trading at $3.3553, 1.83 % down from the trading week due to the recent selling pressure. Traders are keenly observing whether SUI crypto can hold above $3.30-$3.35 or if it will plunge again toward $3.00.
Analyst Predict Bearish Outlook for SUI price
Technical analysis from Ali showed a head and shoulders pattern forming on the SUI/USDT chart. This pattern typically suggested a trend reversal, indicating buyers may lose strength.
The left, head, and right shoulder are visible, with the neckline at $3.00. This pattern will be validated if the SUI price goes below this neckline.
This could also trigger a steep fall to about $1.60 based on the measured move from the head and neckline. However, the sequence could be negated if SUI crypto stays above $3.30-$3.35 and recovers $3.60-$3.80.
The price may rise, and an appreciation could be found above the $3.80-$4.00 run. If this happens, more buyers will be in the market, which signifies a bull run.
Key levels of support and resistance line of interests
At press time, SUI price was close to a support level of $3.In recent sessions. This level has provided significant support to stop the price from going lower.
If this support is breached, the token could plummet to $3.00, a round number that matters to traders. Resistance, for now, is still placed at $3.50-$3.60, as this was an area where sell orders have been put in.
If SUI crypto overcomes this resistance level, it may continue upward towards $4.00. Alternatively, if resistance is not penetrated, then it may result in further weakness of the prices.
Technical Indicators Suggest Market Uncertainty
The daily chart of SUI price showed mixed trends, which suggested that traders are waiting for bullish or bearish confirmation. RSI was at 43.07, which indicates bearish pressure since it is below the 50 midline.
In addition, the Money Flow Index (MFI) was at 49.15, showing balanced buying and selling pressure. This indicated that market participants were undecided.
Funding Rate Data Indicates Market Uncertainty
As depicted by the Coinglasslass chart, SUI’s Open Interest (OI)-Weighted Funding Rate has been oscillating for the past few weeks. A positive funding rate indicated that longs are in control of the sentiment. On the other hand, a negative funding rate means that shorts were in control.
Overall component funding rates were favorable across all interest periods, as long interest drove SUI crypto over $5.00. This happened in the last three moves of the month, early November, and the first two of December.
However, by mid-December, the concept of funding rates become somewhat insignificant. It can even turn negative at times, leading prices to fall slowly.
Funding rates turned negative for the first time from late January to early February. This further indicated that short sellers had taken charge.
Therefore, SUI price dropped below $3.50, confirming this shift in sentiment. However, the token could retest key resistance levels if buyers defend support.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.