The SUI bearish narrative gained traction as the price fell below the 4-hour basic moving average (SMA), a critical threshold for gauging market direction. A break below this level highlights increasing selling pressure and raises concerns about the asset’s ability to recover in the low term.
The 4-hour SMA, previously acting as a support level, now acts as a significant barrier to a potential bullish rebound, reflecting a clear shift in dynamics in favor of the bears. With this development, the likelihood of a further breakdown tends to raise, which may push SUI towards lower support levels.
Traders and investors are closely monitoring an asset’s ability to stabilize and recover, as failure to do so could open the door to deeper corrections. Nevertheless, a rebound above the 4-hour SMA would be crucial to reversing the current trend towards an upward trajectory, signaling renewed strength.
SUI price action analysis: signs of deepening collapse
The current price action shows that SUI is under significant bearish influence, with the support level at $3.9 becoming a critical moment. SUI’s breach below the 4-hour SMA has increased concerns about a long-term decline as the price tries to regain upward momentum.
The $3.9 level currently serves as a potential buffer against larger losses. A decisive break below this threshold could result in a sustained downtrend to lower targets. Such a move may also signal growing negative sentiment, which will translate into increased selling pressure on the market.
However, if the support at $3.9 holds, it could provide grounds for a rebound. This scenario would be based on increased buying activity and improved market sentiment, which will likely push SUI back towards higher resistance levels.
Moreover, the current move in the Composite Trend Oscillator adds weight to the argument that the SUI downtrend could continue towards the $3.9 level. This trend line and RSI are approaching an oversold area, suggesting increasing downward pressure and the possibility of further declines.
Can SUI avoid further declines?
SUI faces increased market pressure as bearish momentum continues, and its ability to maintain key support levels is currently under review. A break below the 4-hour SMA deepened the negative sentiment, signaling a potential downtrend. Additionally, a break below the key support at $3.9 could trigger further declines, focusing on the next support zone at $2.8.
Meanwhile, if the price holds above $3.9, it could pave the way for an eventual rebound, allowing SUI to break through the 4-hour SMA and reach the $4.9 resistance level and beyond. For now, the upcoming sessions will be crucial in determining whether the SUI can stabilize or take a deeper plunge.