SUI Technical Analysis: Downward pressure and long-term recovery potential

Short-term theme: SUI is under selling pressure

SUI is currently trading around $3.03, down 1.6% in the last 24 hours. Technical indicators and moving averages show weakness, warning of an imminent bearish trend. In the daily chart, SUI is below all short and medium-term EMA lines (10, 20, 30, 50, 100), fluctuating between $3.12 and $3.51. The only support level at this time is the 100-day simple moving average at $2.95, which becomes a price level to watch closely in the short term.

Weak downward momentum and clear bearish trend

Momentum indicators like MACD and the Relative Strength Index (RSI) are both in the oversold zone. The current RSI is 41, indicating there is still room for prices to decline further before entering the oversold zone. The MACD line also reflects a clear downward trend. In light of this, SUI's recovery will depend on sufficient buying volume to revive the lost EMA lines.

Risks from post-unlock Token volatility

An analyst warns that SUI is showing weakness after failing to hold the important support level. The recent price increase is merely a minor rebound, and if the price continues to break key support levels, it is expected to drop around $2.10. Notably, the SUI network is expected to unlock over 58 million Tokens on July 1, which could exert downward pressure in the short term.

Long-term outlook for SUI: Positive trend remains intact

Analysis of two scenarios for SUI

One analyst has identified two feasible scenarios for SUI. On a larger time frame, the outlook remains bullish if SUI holds above the support level of $2.90 — the 78.6% Fibonacci retracement level from the price increase in April. These support levels have repeatedly kept the price from plunging further. Once the correction process is complete, a strong third wave of upward movement is expected, targeting around $10.90. However, currently, there is no concrete evidence for an upcoming major rally.

Can SUI maintain above $2.95?

In the short term, SUI is still in a correction phase. Prices may recover to around $3.50–$3.60, but the prerequisite is to break through the $3.14–$3.15 area to confirm the upward momentum. A minor upward trend has formed since June 14 and is still being maintained. Conversely, if the price drops below $2.95, the possibility of a clearer long-term bearish trend will be confirmed.

Conclusion: Does SUI have recovery potential?

Based on technical analysis and market influencing factors, SUI still holds positive long-term potential if the support level of $2.90 holds. However, short-term volatility remains quite complex, and investors should closely monitor key support and resistance levels to make appropriate decisions. Certainly, investors need to be agile to take advantage of these fluctuations in the context of the still volatile global cryptocurrency market.

Source: https://tintucbitcoin.com/du-doan-sui-hom-nay-breakout-hay-breakdown/

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