SUI’s Short-Term Momentum Dwindles: $3.95 Rejection Causes 6% Drop

SUI is currently making an effort to regain momentum, trading at $3.6292 with a slight increase of 1.34% observed on the 4-hour chart. The price reached a peak of $3.9599 in the last 24 hours but faced significant resistance, leading to a rapid pullback. This rejection has resulted in a 6.64% decline over the past day, raising concerns about SUI’s ability to stabilize or if further declines might occur.

SUI Experiences Uptrend Reaching $4.20 Before Sudden Drop

Recent observations indicate that from May 20 to May 23, SUI underwent a distinct upward trend, characterized by a series of higher highs and higher lows. This consistent upward trajectory peaked around the $4.20 mark, showcasing robust bullish energy during that timeframe.

However, shortly after hitting this peak, SUI experienced a drastic reversal. Marked by large downward candles, this phase highlighted significant selling pressure and a swift loss of value. This unexpected downturn from recent highs surprised many traders, with profit-taking triggering anxiety in the market.

The analysis of trading volume reinforces this narrative. A significant increase in volume was observed both at the peak and throughout the sell-off, indicating strong market engagement. Presently, trading volume remains high at approximately 462.57 million USDT, reflecting ongoing market activity.

SUI is currently approaching a vital support range between $3.6000 and $3.6500. A breach of this zone could lead to further declines, potentially lowering the price to the 24-hour low near $3.5233 or even further.

Market Sentiment: Fear or Opportunity?

The market dynamics have been explained as exhibiting both clear bearish indicators and potential bullish prospects. The sudden drop from the $4.20 peak, coupled with the failure to sustain levels above $3.8000, suggests that bearish momentum is prevailing. This is corroborated by a 7-day performance showcasing a 5.62% drop, highlighting short-term weaknesses.

On the optimistic side, if the critical support level of $3.6000 holds, there could be a chance for a rebound towards $3.8000, which previously acted as resistance but may now serve as support. This potential rebound could entice buyers to return to the market, setting the stage for upward movement.

Looking beyond short-term fluctuations, it is noted that a 30-day increase of 20.29% and a 90-day increase of 5.90% indicate an overall positive trajectory for SUI. Despite recent obstacles, these figures suggest a likelihood of sustained recovery, provided that buying pressure increases.

In conclusion, it’s apparent that SUI is at a pivotal point, with a drop below the $3.6000 support potentially leading to further downward pressure. Conversely, a strong bounce from this support zone might facilitate a recovery, particularly if accompanied by rising volume; however, a decline coupled with increasing volume would reinforce the bearish outlook.