Can the SUI token absorb the massive supply surge fueled by the bullish divergence in the RSI?
With crypto market liquidations reaching $288.22 million, of which long liquidations account for $223.33 million, Bitcoin is back at $93,500. Meanwhile, the SUI token has dropped by 7.83% in the past 24 hours.
Currently, SUI is trading at $4.47, with a market cap of $13.44 billion, after trading above $5 days ago. Essentially, the recent market downturn has significantly impacted SUI’s performance.
SUI Price Analysis
On the 4-hour chart, bearish pressure on SUI is evident. After failing to sustain above $5.20, the token dropped below several key support levels, including its local trend line, the 200 EMA, and the psychological $4.50 mark.
The decline has seen SUI break below its local support trend line, the 200 EMA, and the $4.50 psychological support zone, indicating a significant loss of bullish momentum. A 3.55% drop in the past 4 hours was followed by a bearish engulfing candle, marking the breakdown of multiple support levels.
As a result, the 4-hour RSI is nearing its oversold boundary. However, compared to the previous dip, it reflects a bullish divergence in the SUI price trend. This increases the chances of a minor recovery that may retest the broken support trend line.
Additionally, the declining price trend has caused a bearish crossover between the 20 and 50 EMA lines.
SUI Price Targets
Given the current price action, the bearish trend in SUI is likely to persist. The next significant support could be found at the $4 psychological level. A strong close below the 200 EMA will further confirm this bearish outlook.
On the other hand, if SUI experiences a minor recovery that retests the broken trend line, it could reduce selling pressure. This could increase the likelihood of prolonged consolidation above the $4.50 support zone, allowing the price to stabilize before a potential major move.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
