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Can the $SUI token absorb the massive supply surge fueled by the bullish divergence in the RSI?
With crypto market liquidations reaching $288.22 million, of which long liquidations account for $223.33 million, Bitcoin is back at $93,500. Meanwhile, the $SUI token has dropped by 7.83% in the past 24 hours.
Currently, $SUI is trading at $4.47, with a market cap of $13.44 billion, after trading above $5 days ago. Essentially, the recent market downturn has significantly impacted $SUI’s performance.
$SUI Price Analysis
On the 4-hour chart, bearish pressure on $SUI is evident. After failing to sustain above $5.20, the token dropped below several key support levels, including its local trend line, the 200 EMA, and the psychological $4.50 mark.
The decline has seen $SUI break below its local support trend line, the 200 EMA, and the $4.50 psychological support zone, indicating a significant loss of bullish momentum. A 3.55% drop in the past 4 hours was followed by a bearish engulfing candle, marking the breakdown of multiple support levels.
As a result, the 4-hour RSI is nearing its oversold boundary. However, compared to the previous dip, it reflects a bullish divergence in the $SUI price trend. This increases the chances of a minor recovery that may retest the broken support trend line.
Additionally, the declining price trend has caused a bearish crossover between the 20 and 50 EMA lines.
$SUI Price Targets
Given the current price action, the bearish trend in $SUI is likely to persist. The next significant support could be found at the $4 psychological level. A strong close below the 200 EMA will further confirm this bearish outlook.
On the other hand, if $SUI experiences a minor recovery that retests the broken trend line, it could reduce selling pressure. This could increase the likelihood of prolonged consolidation above the $4.50 support zone, allowing the price to stabilize before a potential major move.