SUI Price at a Critical Juncture After Dropping to a 3-Month Low

SUI Price at a Critical Juncture After Dropping to a 3-Month Low

The SUI token is facing a make-or-break moment after a sharp decline, approaching a key support level at $3. With bearish indicators strengthening, SUI’s ability to sustain this level will determine its next move.

SUI Price Struggles Near Key Support

SUI has experienced a significant drop of 42% from its all-time high, bringing it to a critical support zone at $3. The last time the token reached this level was in mid-November 2024. With selling pressure intensifying, the token must either stage a rebound or risk further losses.

Will SUI Hold the $3 Support?

Since reaching a peak of $5 on January 6, SUI has undergone a sharp correction. The current price movement suggests a pivotal moment, where holding above the $3 mark could lead to a recovery toward the $5 resistance. However, if the token breaks below this level, it could trigger a deeper pullback.

Technical Indicators Flash Bearish Signals

A closer look at the daily chart shows SUI forming a higher low compared to previous levels on October 28 and November 5. However, bearish indicators suggest a possible continuation of the downtrend.

• Relative Strength Index (RSI): The RSI is trending lower, indicating increasing bearish momentum. If this trend continues, SUI could fall further below its current support.
• Exponential Moving Average (EMA): The token is trading below the 20-day EMA, signaling a weak uptrend. A failure to reclaim this level could reinforce bearish sentiment.
• Awesome Oscillator (AO): The AO remains in negative territory, confirming the presence of downward momentum.

Potential Price Scenarios for SUI

• Bearish Outlook: If SUI fails to sustain the $3 support, it could break below the 0.382 Fibonacci retracement level at $2.34. This scenario could push the price down to the next major support at $1.62.
• Bullish Reversal: If market conditions improve and SUI manages to breach the $3.50 resistance, it may initiate a rebound toward $4.33, with further upside potential.

Conclusion

SUI is currently at a crossroads, with its next move hinging on whether it can hold the $3 support. Traders should closely monitor key resistance and support levels, as the market sentiment could play a crucial role in determining the token’s short-term trajectory. Stay updated with the latest market trends to make informed trading decisions.