Key Insights:
- SUI dropped 4.58% after a $150M token unlock, increasing sell pressure.
- Key support level at $2.06 is being tested; further downside possible.
- RSI and MACD indicate bearish sentiment, but a recovery is possible.
SUI has experienced a significant decline recently, with a 4.58% drop following a $150 million token unlock event. As a result, market sentiment has turned bearish, and traders are now closely watching key support levels to assess whether the asset can recover or continue its downward trajectory.
Currently, SUI is testing a critical support zone near $2.06, with some analysts forecasting deeper losses. Investors are also focused on additional support levels at $1.5160 and $1.1400.
Market Sentiment Weakens Post-Token Unlock
The 150 million SUI token release has subsequently brought significant pressure on the price, perhaps since it’s the latest market movement the project has made. When token unlock events occur, it usually causes an increase in the market supply as investors start to sell their holdings to cash out.
The release of tokens in such a large quantity added 2.03 % to the total supply and hence played a negative role as the effect of dilution was strengthened and thereby became one of the reasons for the recent price drop.
All of these factors have affected the overall market sentiment, as there have been wider macroeconomic fears, fuelled by tariff-driven worries. Because of this, and due to the uncertain environment these are taking place in, SUI’s price was unable to cling to its previous levels. SUI, for the first time in three weeks, also thus fell below $2.50, the concern of short-term investors.
SUI Price Technical Indicators Point to Bearish Outlook
A bearish look for SUI in the short term is supported by technical indicators. The price has been up and down on the support line, bouncing between Bollinger Bands, and has been hovering near the lower end of the Bollinger Bands recently, a signal to watch out for a further decline or potential recovery if it holds. If SUI’s price breaches the lower Bollinger Band around $2.06, it could push it to the next level of support.
The RSI value of 39.57, which is not yet in the oversold region and is starting to weaken. The indicator is still below the neutral 50 mark, suggesting that there is more selling pressure than buying interest at the current moment.
A move above the midline at the 50 mark, it will demonstrate that stabilization is taking place and one may expect more gains prior to the market getting overbought at the 70 mark. But if the RSI continues to fall and end up below the oversold level, 30 mark level may tempt much selling.
The CVD is showing a negative value of -3.07M, indicating that the selling volume is outweighing the buying pressure. This goes in line with the current price drop and shows a bearish sentiment in the market is expected to continue. If this continues, the prices could go down as there are more sell orders than the buy orders which give a negative CVD.
What Next For SUI Price?
However, as SUI is on the decline, it is heading in the direction of a critical demand zone on the weekly chart, which may play as a turning point. According to market analyst Cryptotarget11, the price is approaching a well established S/R (support/resistance) zone which held fast and caused reversals in the past.
Traders should watch the $2.05 zone closely, as it could attract buying interest and shift sentiment. A breakdown below this level would likely test support at $2.00, with further downside toward $1.90 or $1.50 if the selling continues. However, once bearish pressure eases, some analysts foresee a potential breakout to new all-time highs, possibly exceeding $10 in future cycles.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
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