Key Insights:
- The TD Sequential indicator signals a potential SUI rebound if the price holds above the $2.00 support level.
- A Head and Shoulders pattern suggests a bearish breakdown, with SUI potentially dropping to $1.60 if support fails.
- Derivatives trading volume is rising, but declining open interest indicates trader caution and uncertainty.
Sui (SUI) price is showing mixed signals in the market as analysts debate its next move. While some see a potential rebound, others predict a further decline.
At press time, SUI was at $2.15, down 4.57% in the past 24 hours, with a market cap of $6.79 Billion. Traders are closely watching support and resistance levels as technical indicators provide conflicting signals.
Analysts Divided on SUI Price Future: Buy Signals vs. Bearish Patterns
Ali Charts, a market analyst, pointed out that the TD Sequential indicator showed multiple buy signals on the daily chart. This suggested that an SUI price recovery could be on the horizon.
Despite these buy signals, SUI remained in a downtrend. The price has been making lower highs and lower lows since mid-January. A strong resistance zone exists near $2.25, while support is being tested around $2.00.
If SUI holds above this support, it may confirm the buy signals and move higher. However, further declines could follow if the price breaks below $2.00.
Concurrently, CryptoMutant, another analyst, shared a different perspective. They stated that SUI price had formed a Head and Shoulders pattern, signaling a potential bearish breakdown. The analyst noted that $1.60 could be reached if the pattern continues.
A drop to this level could present a buying opportunity, as some traders may look for entries around strong support zones. However, if SUI fails to recover, bearish momentum could push the price even lower. Traders remain cautious as volume trends suggest weak buying interest.
SUI Price Technical Analysis Shows Bearish Pressure
With further proof of market pressure to decline, the technical indicators bolster the negative trend. The selling impetus is still strong, as indicated by the exponential moving averages, which continue to decline.
The market has a clear barrier setup because prices stay under the Ichimoku Cloud. This showed that many investors think buying at these levels will prove hard.
However, the Relative Strength Index (RSI) is near the oversold level at 31.60. Thus, if it goes below 30 at some point, it might lead to a short-term upturn again.
Selling pressure is persistent in the long term and short term, as indicated by the MACD line. It is below the signal line, while the histogram bars are negative.
Moreover, as per SUI/USD daily price chart, the technical level of $2.00 also seems to be a critical support level.
However, if SUI price breaks this level, a possible bounce may occur. This could further lead counter-trend traders up to the target contention of the bears that creates a short-lived buying trap.
SUI Derivatives Market Sees High Activity
Another crypto analyst, Michael van de Poppe, provided a long-term perspective. He stated that SUI was trading at a crucial support level.
He indicated that the asset has fallen more than 50% from its recent high. It had now reached a pricing point at which long-term investors could become interested.
He indicated that the current area was high-timeframe support. He also explained that this was where he would consider taking a position if interested in SUI. According to his analysis,SUI could attract renewed buying interest at these levels.
However, he also noted that broader market sentiment would be a key factor. It will help determine whether the asset will recover or continue declining.
The trading volume in derivatives has also increased by 28.87%, presently at $2.03 Billion. This indicated increased market turnovers. However, open interest has declined by 5.86%, suggesting that traders are closing positions or facing liquidation.
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.