SUI faces strong rejection near $3.45 as bearish signals accumulate on the charts. Derivatives data shows indecision, while network TVL and stablecoin market cap rise.
SUI is up almost 2% today, trading at $3.30. However, facing crucial resistance, the prevailing downtrend hints at a prolonged correction back to the $3 psychological level.
SUI Price Analysis
On the 4-hour price chart, SUI shows a bullish failure to overcome the $4.20 resistance level, resulting in an ongoing correction phase. With lower high formations, SUI also forms a local resistance trendline. Last week, SUI bottomed out at the $3.03 support level before re-challenging the local resistance trendline.
However, the bullish action faces additional opposition from the support-turned resistance zone, extending from $3.33 to $3.44 alongside the 50-period EMA at $3.41. With multiple bearish elements filing against the bullish recovery, SUI is likely to take a bearish turnaround.
Supporting the downside chances of 100- and 200-period EMAs closing towards a negative crossover. Meanwhile, the 4-hour RSI line struggles to resurface above the halfway level.
As per the price action analysis, the downfall is likely to test the $3.03 crucial support level. However, a potential 4-hour closing below the support line could test the 50% Fibonacci level at $2.71.
On the flip side, a potential crossing above the 23.60% Fibonacci level at $3.45 will reinstate a bullish trend for SUI. This could result in a price surge to $4.20 resistance level.
SUI Derivatives Reveal Traders Waiting on the Sidelines
As SUI stands at a crucial crossroads, the derivatives data reflects a minor increase in bullish sentiment. Open interest has surged by 1.72% to reach $1.43 billion, reflecting increased inflow in the SUI derivatives.
The 24-hour liquidations show an indecisive trend, with long and short positions nearly balanced at $769K and $749K, respectively.
Hence, derivatives data suggest traders are waiting for SUI to establish a decisive trend before committing.
SUI TVL Recovery Signals Network Growth
According to DeFiLlama, the SUI network’s total value locked (TVL) surged to $1.75 billion after the recent Cetus hack dropped it to $1.57 billion.
Furthermore, the stablecoin market cap on the SUI network has jumped over 8% in the past seven days, reaching $1.10 billion, signaling increased liquidity. Overall, the SUI network maintains a slow but steady growth trend.
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.
