SUI bearish narrative has gained traction as the price slips below the 4-hour Simple Moving Average (SMA), a critical threshold for gauging market direction. The break below this level underscores mounting selling pressure and raises concerns about the asset’s ability to recover in the short term.
The 4-hour SMA, previously acting as a support level, now poses a significant barrier to any potential bullish rebound, reflecting a clear shift in momentum favoring the bears. With this development, the likelihood of a continued breakdown tends to increase, possibly pushing SUI toward lower support levels.
Traders and investors are closely watching the asset’s ability to stabilize and reclaim lost ground, as failing to do so could open the door for deeper corrections. Nonetheless, a recovery above the 4-hour SMA would be pivotal in reversing the current trend toward an upward trajectory, signaling renewed strength.
Analyzing SUI’s Price Action: Signs Of A Deepening Breakdown
Current price action reveals that SUI is under significant bearish influence, with the $3.9 support level emerging as a critical juncture. SUI’s breach below the 4-hour SMA has heightened concerns about extended declines as the price struggles to regain upside momentum.
The $3.9 level is presently serving as a potential buffer against steeper losses. A decisive break below this threshold might cause a sustained bearish trend to lower targets. Such a move may also signal growing negative sentiment, leading to increased selling pressure in the market.
However, if the $3.9 support holds firm, it could provide a foundation for a rebound. This scenario would hinge on increased buying activity and improved market sentiment, which is likely to push SUI back toward higher resistance levels.
Furthermore, the current movement of the Composite Trend Oscillator adds weight to the argument that SUI’s bearish trend could continue toward the $3.9 level. This trend line and the RSI are moving closer to the oversold territory, suggesting increasing downward pressure and the possibility of further declines.
Can SUI Avoid Further Declines?
SUI is facing heightened market pressure as bearish momentum takes hold with its ability to maintain key support levels now under scrutiny. A breach below the 4-hour SMA has added to the negative sentiment, signaling a potential downward trend. Also, breaking below the $3.9 key support might trigger more drops, bringing the next support zone at $2.8 into focus.
Meanwhile, if the price maintains its position above $3.9, it could pave the way for a possible rebound, allowing SUI to break through the 4-hour SMA and target the $4.9 resistance level and beyond. Thus far, the coming sessions will be crucial in determining whether SUI can stabilize or succumb to a deeper breakdown.
Source link
Godspower Owie
https://www.newsbtc.com/sui/sui-bearish-move-gathers-pace/
2025-01-13 12:30:46
