🚨 SUI breaks below $3: Warning of a deep correction – Opportunity or risk?
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This morning, SUI – a token of the Layer 1 ecosystem – officially dropped below $3, currently trading around $2.92. This is a strong psychological support area, and breaking this level could open the door to a deeper correction.
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🔎 Quick analysis
• Technical: Broke the 200-day EMA, weak RSI, MACD has not confirmed bullish divergence. The current trend is clearly downward.
• On-chain: Over $12 million in long positions were liquidated, open interest decreased – indicating that speculative capital is withdrawing.
• Fundamental information: On July 1, SUI will unlock nearly 0.58% of the total supply (~$178 million), which could continue to apply selling pressure.
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🧠 Personal assessment
• If SUI cannot hold the $2.80 area, the likelihood of returning to $2.50–$2.60 is very high.
• Conversely, if it breaks back above $3.10 with significant volume, it could be a short-term “bear trap” before bouncing back to $3.5.
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⚠️ Warning
• Those who FOMOed in the $3.8–$4.2 range are facing prolonged capital loss risks.
• A sharp decline in SUI could affect the surrounding ecosystem, putting pressure on DEX/NFT/bridge.
• Overall market risk increases if BTC continues to decline, altcoins may plummet further.
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✅ Strategy suggestions
• Scalper: Avoid taking risky positions around $2.90–$3, should only scalp if there are clear rebound signals with volume.
• Swing trader: Consider lightly bottom-fishing around $2.70–$2.80, but need to have a clear stop-loss.
• Long-term holder: Should only hold if there is a specific plan and closely follow SUI ecosystem news.
