After surging nearly 70% in recent weeks, SUI faced a swift correction, losing 10% of its value in the last three days. Despite the strong bullish momentum that put the altcoin in the spotlight, the sudden pullback did not shake investors.
The broader outlook for SUI remains intact, with on-chain metrics and market indicators signaling that this decline may just be a cooling off.
SUI investors may celebrate
The 50-day exponential moving average is about to cross above the 200-day EMA. This near crossover suggests that SUI may soon witness a golden cross — a strong technical signal indicating a change in long-term momentum.
If the crossover completes, it would mark the end of the death cross for the coin that began seven weeks ago.
This change would likely encourage new buying pressure. A golden cross often precedes major rallies, and with the coin's price having risen nearly 70% before the recent drop, the bullish sentiment seems far from fading.
SUI EMAs. Source: TradingView
SUI's relative strength index (RSI) recently surpassed the overbought limit, triggering a cooldown as traders took profits. This drop in RSI corresponded to the 10% price drop, signaling that the asset was temporarily overheated and needed to stabilize.
Despite the pullback, the RSI remains in bullish territory, hovering just below the overbought zone. This means that while the rally has paused, the overall trend remains intact, and new gains could be on the horizon if buying volume increases again.
SUI RSI. Source: TradingView
SUI price seeks recovery
At the time of publication, the altcoin is trading at $3.16, having fallen below a key support level in the last 24 hours. The 10.77% drop stems from the altcoin's failure to surpass the resistance level of $3.59, exacerbated by a general market cooling. Still, the correction is seen by many traders as temporary.
Broader indicators continue to reflect bullish conditions. The imminent golden cross, resilient RSI, and strong upward momentum indicate that SUI may soon reclaim $3.16 as support. If momentum returns, the asset may test $3.59 again and potentially surpass it, resuming its previous recovery path.
SUI Price Analysis. Source: TradingView
However, delays in recovery could change the scenario. If SUI fails to recover $3.16 soon, the altcoin risks falling further. A failure to surpass $3.39 or secure support at $3.18 could send the price plummeting to $2.77, potentially invalidating the bullish thesis and signaling a trend reversal.
The article SUI price remains optimistic as the 7-week death cross approaches its end was first seen on BeInCrypto Brazil.
