As SUI continues its descent into bearish territory, technical indicators are increasingly pointing to a tough road ahead. The Relative Strength Index (RSI), a key metric, has turned negative, indicating a rise in selling pressure, suggesting that further declines could be forthcoming. With SUI navigating this bearish shift, market participants are vigilantly observing potential support levels, contemplating whether the asset can find stability or if sellers will persist in pushing prices lower.
This analysis delves into SUI’s recent plunge into bearish territory, investigating the consequences of the RSI’s decline and the likelihood of further price drops. It aims to shed light on the downside risks facing SUI by evaluating critical technical indicators and support levels throughout this piece.
Market Overview: SUI’s Transition to Bearish Territory
On the 4-hour chart, SUI has displayed significant bearish momentum, trading beneath the 100-day Simple Moving Average (SMA) as it nears the $1.4 mark, and forming multiple bearish candlesticks. The 100-day SMA, usually a vital support level, now serves as resistance, indicating a shift in sentiment where sellers dominate.
An examination of the 4-hour Relative Strength Index (RSI) shows that the indicator has declined to a low of 23%, following a prior recovery attempt that failed to maintain at 52%. With the RSI now in the oversold territory, selling pressure might be excessive; unless a significant uptick in buying interest occurs, SUI could remain under pressure, potentially leading to further declines.
Moreover, on the daily chart, SUI is displaying a distinct negative trajectory as it trends downward toward the $1.4 level, approaching the 100-day SMA. The $1.4 level, in conjunction with the 100-day SMA, forms a crucial support zone, and a breach below these levels could further reinforce the existing downtrend, possibly paving the way for additional decreases.
Lastly, the daily RSI for SUI has fallen to 42%, significantly dipping below the pivotal 50% level, which typically distinguishes bullish from bearish territory. This decline normally underscores the strong bearish momentum, suggesting that sellers are firmly in control, and reflecting growing pessimism regarding SUI’s price.
Potential Price Targets: How Low Could SUI Go?
As SUI persists in its downward trajectory, traders must identify potential price targets. If the $1.4 support level is broken, SUI could decline to $1.23, where buying interest might emerge. A further drop past this threshold could initiate a deeper correction toward other support levels.
Conversely, if the cryptocurrency manages to maintain its position above $1.4, it could signal a potential reversal, allowing bulls to regain some control in the market and drive the price upwards toward the $2.1 resistance level and beyond.
