SUI struggles to maintain levels above $2.30, with rejection candles signaling a potential pullback below the $2 psychological support.
Despite the increased volatility in the crypto market, SUI has managed to hold steady at around $2.30. Currently trading at $2.32, the SUI price action shows multiple rejection candles at higher price levels. This indicates the bulls’ struggle to sustain upward momentum due to increased selling pressure.
This raises the question: Will a pullback below the $2 psychological support level occur?
SUI Price Analysis Signals Bearish Risks
The daily chart reveals that SUI has broken out of a falling channel pattern, signaling a bullish trend. However, the bulls are finding it difficult to maintain momentum amid heightened market volatility.
Over the past 24 hours, as Bitcoin fluctuated between $81k and $88k, SUI has failed to hold above $2.50. This is evident from the increased number of higher price rejection candles, suggesting that supply is outweighing demand. Furthermore, the MACD and signal lines are approaching a potential bearish alignment.
The 100- and 200-day EMA lines continue to trend downward following a recent “death cross.” A potential bearish crossover between the 100- and 200-day EMA could trigger a sell signal for price action traders.
SUI Network Sees Surge in Activity
Despite the price volatility, SUI’s network is experiencing a recovery in the total value locked (TVL) in DeFi. According to DeFiLlama, TVL on the SUI network has risen to $1.295 billion in recent weeks.
In addition, DEX volume has spiked to $386.88 million, while app revenue has reached $134.95k. Despite an uncertain market environment, SUI’s network is seeing increased activity.
On April 2, SUI saw a surge in new accounts, with 4.11 million new users joining the network. This has helped push the total number of accounts to 120.47 million, with daily active accounts rising to 3.15 million on the same day.
SUI Price Targets
As the SUI network continues to grow, short-term volatility driven by uncertain market conditions may lead to quick downspikes. Based on trend-based Fibonacci levels, the price could potentially reach the $2 psychological mark, which acted as a support level last month.
In an optimistic scenario, after testing this level, a reversal could challenge the 23.60% Fibonacci level at $3.21. However, the 200-day EMA, near $2.86, could act as an intermediary resistance.
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.
