SUI failed to break $4.20 resistance and continues trading within a falling channel.
Bearish EMAs and RSI hint at further downside toward the $2.71 Fibonacci support.
Derivatives market shows rising bearish sentiment with increasing short positions and falling open interest.
The floor beneath Sui — SUI, is cracking. After tumbling below $3, traders now brace for more pain. A potential drop to $2.71 looms large as market volatility rattles crypto prices. The question is simple but urgent: can SUI bulls regroup, or will bears drag the token further down? With market sentiment hanging by a thread, every price move now carries weight.
https://twitter.com/egidesimba/status/1930995471943663693 SUI Bears Tighten Their Grip
SUI failed to breach the stubborn $4.20 resistance after three valiant attempts. Each rejection sharpened the downtrend. Over the past two weeks, SUI has shed more than 25% of its value. The 4-hour chart paints a bleak picture. A falling channel pattern traps the price in a downward spiral. The recent death cross between the 50 and 200-period EMAs has reinforced the bearish outlook. Adding fuel to the fire, the 100 and 200 EMAs also crossed negatively. This signals deepening bearish momentum.
During the latest pullback, SUI plummeted to $2.88, testing local support levels. However, bulls staged a small comeback. SUI now trades at $3.02, reclaiming the key psychological mark. The token also bounced from a local support trend line, sparking hopes of a short-term recovery. The 4-hour RSI offers a glimmer of hope. It surged from oversold territory, hinting at minor bullish momentum. Still, the broader sentiment remains heavily tilted toward bears.
If market volatility persists, SUI faces another test. The 50% Fibonacci level at $2.71 could soon act as the next major support. A close above $3.00 could spark a challenge of the resistance trend line near $3.20. For now, the price remains locked in a battle between immediate recovery and deeper correction. Bulls must prove their strength to reclaim higher levels.
Derivatives Data Shows Bearish Dominance
While spot traders eye key levels, the derivatives market reveals growing pessimism. Coinglass data shows over $11 million worth of long positions were liquidated in the past 24 hours. Short liquidations, however, remain modest at $693K. This signals an exodus of bullish traders from the market. Open interest also dropped 2.4%, now sitting at $1.39 billion.
The long-to-short ratio has plunged to 0.8843, reflecting increasing confidence among short sellers. The data underscores a clear shift toward bearish dominance. Meanwhile, the broader market adds more fuel to this uncertain fire. Bitcoin recently plunged below $103,000, touching $100,000 briefly. This intensified overall crypto market volatility and pressured altcoins like SUI.
Unless bulls reclaim critical levels soon, the path of least resistance points downward. A sustained break below $3 could open the gates to $2.71. For now, SUI balances on a fragile edge. Market volatility continues to dictate every twist and turn. Traders should watch price action closely as this battle between bulls and bears unfolds.
