Sui (SUI) is facing significant headwinds as its price struggles to find stable ground. In the last 24 hours, SUI has dropped 3.25%, bringing its price to $3.72. This continues a challenging trend that has seen the cryptocurrency lose 4.63% of its value over the past week.
The negative price action has impacted its overall market standing, with its market capitalization slipping to $13.09 billion. Investor caution is palpable, reflected in a sharp 37% plunge in 24-hour trading volume, which now stands at $1.32 billion. During the recent session, SUI traded within a tight range of $3.63 to $3.88, indicating uncertainty following a broad cryptocurrency market downturn.
Broader Market Conditions Fuel Bearish Sentiment
Sui’s performance is not occurring in a vacuum. The entire cryptocurrency market has been weighed down by macroeconomic factors. The latest U.S. Consumer Price Index (CPI) data, revealing a 3.3% annual inflation rate, triggered a 1.5% drop across the crypto market and led to a staggering $1.05 billion in liquidations.
For SUI specifically, the data underscores a bearish positioning among traders. Short liquidations, amounting to $119,000, significantly exceeded long liquidations of just $14,000. Further signs of cooling interest can be seen in the derivatives market, where SUI’s futures open interest declined by 9.2% to $1.79 billion. Meanwhile, funding rates have normalized to 0.0083% after reaching a peak in July.
SUI Technical Outlook: A Precarious Position
A closer look at the charts reveals that Sui is at a critical technical juncture. An attempted breakout on August 15 above the $3.57 Fibonacci level failed to sustain momentum, triggering stop-loss orders and accelerating the subsequent decline.
Several key indicators are flashing warning signs for bulls:
Moving Average Rejection: The price was recently rejected near the 30-day Simple Moving Average (SMA) at $3.79, confirming it as a point of resistance.
Fading Momentum: The MACD histogram shows a negative value of -0.0026, indicating that bearish momentum is currently in control.
RSI Reading: On the 4-hour chart, the Relative Strength Index (RSI) has slipped to 44. A reading below 50 typically suggests that bears have the upper hand in the near term.
Key Price Levels to Watch
The Sui price is currently consolidating around $3.72, a level that critically aligns with the 61.8% Fibonacci retracement. This support level is pivotal for SUI’s next move.
The Bearish Scenario: If the price fails to hold the 3.52**, which corresponds to the 78.6% Fibonacci level. A breakdown would likely accelerate selling pressure toward this target.
The Bullish Scenario: For any recovery to take shape, SUI must first defend the and $4.07, areas where significant selling pressure has previously emerged. A decisive move above the 4.75** resistance zone.
In conclusion, the Sui price is at a crossroads. Traders will be closely watching the $3.72 level, as its ability to hold or break this support will likely dictate the token’s direction in the coming days.
