Sui price continues its downtrend after failing to break resistance at $4.20, with a potential drop to $2.71 as market volatility intensifies.
As Bitcoin tumbles below the $103,000 mark while momentarily reaching the $100,000 level, altcoins are in a free fall. Sui momentarily breached below the $3 psychological level in a bearish pattern. Will the increasing market volatility drop the SUI price to $2.71?
SUI Price Analysis
On the 4-hour chart, SUI continues a bearish trend after failing in its third attempt to overcome the $4.20 resistance.
Since then, the SUI price has decreased by more than 25% over the past two weeks. The declining trend forms a falling channel pattern and has resulted in a death cross between the 50 and 200-period EMAs.
With the recent downfall, the 100 and 200 EMAs have also registered a negative crossover. During the pullback, the SUI price fell to $2.88 last night. However, the intraday recovery has pushed the current market price to $3.02, reclaiming the psychological level.
Additionally, it marks a positive comeback from the local support trend line. As the SUI price attempts to bounce back within the falling channel, the 4-hour RSI line shoots off from the oversold region, signaling a minor burst in bullish momentum, while the overall sentiment remains bearish.
As the broader market remains volatile, SUI could test the immediate support level at the 50% Fibonacci level at $2.71, as it remains the path of least resistance. However, a closing above the $3.00 resistance level could challenge the overhead resistance trend line near the $3.20 level.
Bearish Sentiment Surge in Derivatives Market
As the bearish trend in SUI intensifies, the derivatives data from Coinglass reveals that more than $11 million worth of bullish positions were wiped out in the past 24 hours.
The short liquidations remain at $693K, reflecting a massive exodus of SUI bulls. This has resulted in a steep pullback of 2.4% in the open interest down to $1.39 billion.
Additionally, the increased long liquidations have dropped the long/short ratio to 0.8843 in the past 24 hours. Hence, the derivatives data reflects a complete bearish dominance, anticipating a steep correction in the altcoin.
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.
