Key Takeaways
$SUI surged 34% but is now facing short-term selling pressure and a 7.5% daily dip.
Technical indicators suggest $3.40 as a critical support level, with $4.20 as the breakout target.
Despite bearish sentiment, $50M in exchange outflows hint at long-term accumulation.
After a powerful 34% rally that pushed $SUI to the $4.20 resistance zone, the token is now showing signs of a cooldown. Traders have begun to rotate capital into other assets, leading to a 26% drop in trading volume and a 7.5% price dip over the past 24 hours. However, on-chain data reveals that nearly $50 million worth of SUI has exited exchanges, suggesting that long-term holders are accumulating during the pullback.
The Relative Strength Index (RSI) has dropped from overbought levels to 61, signaling a potential shift in momentum. While short-term sentiment leans bearish, the broader outlook remains cautiously optimistic, especially if SUI can defend its next support level.
Price Action & Support Zones
SUI’s recent rejection at $4.20 has triggered a short-term correction, with analysts eyeing $3.40 as the next major support. If the token fails to hold this level, a further 10% decline could follow. Conversely, a daily close above $4.20 would invalidate the bearish thesis and open the door for a 30% rally toward $5.50.
Liquidation data shows heightened interest around $3.67 and $3.88, with $14.4M in long positions and $20.9M in shorts, highlighting the tug-of-war between bulls and bears.
Market Sentiment & On-Chain Metrics
The long/short ratio currently stands at 0.87, reflecting a bearish tilt among traders. Yet, the $50M in exchange outflows suggests that investors are buying the dip, positioning for a potential rebound. This divergence between short-term trading and long-term accumulation could set the stage for a volatile but promising recovery.
What’s Next for SUI?
All eyes are now on whether $SUI can hold the $3.40 level and reclaim bullish momentum. If Bitcoin maintains its strength and broader market sentiment improves, SUI could bounce back swiftly. For now, traders should watch for a confirmed breakout above $4.20 or signs of consolidation near support.
