SUI is experiencing a notable pullback after its recent rally, with multiple key support levels coming into focus. As the price edges lower, these areas will play a pivotal role in determining whether the asset can regain its bullish momentum. A strong defense of these supports could signal the start of a fresh upward move, while a failure to hold may lead to deeper declines.
This article aims to assess SUI’s recent price pullback and explore critical support levels that could trigger a potential bullish reversal. By analyzing technical indicators and market conditions, it seeks to provide insights into possible recovery scenarios, highlighting the levels to watch for a sustained upward movement or further downside risk.
Recent Price Action: SUI’s Decline Explained
Recently, SUI’s price has taken a bearish turn on the 4-hour chart, following a rejection at the $2.1 resistance level. Despite this decline, the cryptocurrency remains above the 100-day Simple Moving Average (SMA), indicating that a recovery may be possible, provided buyers regain control and the market shifts back in favor of the bulls.
An analysis of the 4-hour Relative Strength Index (RSI) suggests that bulls could be preparing for a resurgence. Although the RSI has slipped to 55% from the overbought zone, it remains above the crucial 50% mark, indicating that bullish momentum persists. This positioning reflects a temporary slowdown, but as long as the RSI holds above this threshold, the market retains the potential for renewed upward movement.
Also, on the daily chart, SUI is exhibiting signs of negative pressure, trading above the 100-day SMA. While the price remains above the SMA, this current bearish movement could be short-lived, as there remains a possibility for a price recovery. The positioning above the SMA implies that buyers could step in to reverse the trend if they regain control, potentially leading to a rebound in price.
Finally, on the 1-day chart, a closer examination of the RSI formation indicates that SUI’s price may experience further declines, as the signal line has descended to 69% from the overbought territory. However, there is the possibility of a bullish comeback if the RSI can maintain its position above the 50% threshold.
Key Support Levels: Where Could SUI Buyers Step In?
SUI is approaching critical support levels that could attract buyers and trigger a recovery. The initial key level to monitor is the $1.4 support zone, which could serve as a critical point for renewed bullish interest.
Should buyers step in at this level, SUI might rebound toward the $2.1 resistance mark. A successful breakout above this resistance could pave the way for the formation of a new all-time high, signaling a strong resurgence.
However, if the $1.4 support level fails, the next critical area to watch is around the $1.1 mark, where a stronger base of support could form as the price continues to decline. Maintaining these levels is crucial since it will determine whether SUI can regain upward momentum or remain vulnerable to more bearish pressure.
Featured image from YouTube, chart from Tradingview.com