With an analyst highlighting bullish exhaustion in SUI, will a bear cycle drop the prices to $1.50?
Amid the bear market, the resilience in the SUI price trend stays strong. The altcoin continues the uptrend, one of the few key performing coins in a bear market.
However, the massive supply overhead at $2 and the risky market conditions warn of a correction. Will this correction disintegrate the September (SUIptember) bull run gains?
SUI Enters High-Risk Waters
Sustaining a growth of 11.34% in the past seven days, SUI marks a remarkable achievement in maintaining a bullish trend in the crypto bear market. The SUI token is currently trading at $1.8842.
Following yesterday’s bullish engulfing candle, which saw a 5.60% jump, the SUI token shows an intraday gain of 1.13%. However, the rejection from a 24-hour high of $2.0092 indicates mounting selling pressure at higher levels.
Reflecting the massive supply overhead, the chances of SUI’s downfall are increasing. However, the ongoing trend reversal rally has caused almost a 250% jump in the past 60 days.
In the 4-hour chart, SUI is forming a rising channel pattern. Currently, it’s pulling back from the upper boundary of the channel, signaling the possibility of a bearish reversal.
Adding to the negative sentiment, the RSI indicator on the 4-hour chart shows a bearish divergence. While SUI has been moving higher within the channel, the RSI is declining, approaching the neutral 50 line, which could be a warning of weakening momentum.
Analyst Sounds Sell Signal for SUI
Crypto analyst Martinez Ali recently tweeted a sell signal for SUI, citing exhaustion in its bullish trend. Using TD Sequential indicators, Ali highlighted this signal in the 3-day chart, following SUI’s 145% rally since September. This suggests a potential pullback may be on the horizon.
Key Price Targets for SUI
A bearish breakdown of the rising channel could halt SUI’s recovery rally as the negative cycle tests critical support levels. On the 4-hour chart, the 50, 100, and 200 EMAs provide key support at $1.73, $1.57, and $1.36, respectively.
In the daily chart, a drop below the $1.7492 level could trigger a fall toward the $1.50 psychological support. This would be a massive 20% decline from its current value.
On the upside, a continuation of the bullish trend would face resistance at the $2 and $2.16 levels.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
