Key Highlights:

$SUI remains trapped in a falling channel, unable to breach the $4.20 resistance.

Technical indicators and derivatives data point to heightened bearish momentum.

A potential retest of the $2.71 Fibonacci support is on the horizon.

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Price Action Overview

#SUİ continues to face heavy selling pressure after failing to break above the critical $4.20 resistance zone, despite multiple attempts. The token is currently trading within a falling channel, highlighting a persistent downtrend. Since peaking in late May, SUI has declined more than 25%, reflecting a broader correction across the crypto market.

The recent breakdown below the $3.00 psychological level intensified bearish sentiment, though a minor recovery has pushed the price back to around $3.02. This rebound followed a bounce from a local support trendline, offering a temporary reprieve for bulls. However, technical signals suggest that further downside may be imminent.

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Bearish Technical Indicators Dominate

The 4-hour chart reveals a clear bearish structure. A death cross between the 50- and 200-period EMAs recently confirmed the negative trend, and a subsequent bearish crossover between the 100- and 200-period EMAs has further strengthened the outlook. The Relative Strength Index (RSI), which briefly dipped into oversold territory, has recovered slightly—indicating a potential for short-term relief—but remains below neutral levels.

If the current volatility persists, SUI may retest the 50% Fibonacci retracement level at $2.71, which serves as a major support zone. To counter the downward momentum, bulls must push the price above $3.20 and break the descending resistance line. Until then, the bias remains firmly to the downside.

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Derivatives Market Signals Bearish Sentiment

The derivatives market paints a cautious picture for SUI. According to Coinglass, over $11 million in long positions were liquidated in the past 24 hours, compared to just $693,000 in shorts—indicating a mass exit by bullish traders. Open interest has also declined by 2.4%, now standing at $1.39 billion.

Notably, the long-to-short ratio has fallen to 0.8843, underscoring growing confidence among short sellers. This shift in sentiment reflects broader market unease, especially after Bitcoin dipped below the $103,000 mark and briefly touched $100,000—triggering heightened volatility across altcoins.

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Outlook: Can Bulls Regain Control?

With SUI trading near a critical threshold, the next few sessions could prove pivotal. A sustained move below $3.00 would likely pave the way for a drop toward the $2.71 support. On the other hand, a close above $3.20 could mark the beginning of a short-term recovery.

For now, SUI remains at a crossroads, with bears tightening their grip and bulls struggling to maintain ground. Market participants should monitor key levels closely as momentum continues to shift.

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