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Will the $0.80 support absorb the increasing selling pressure to prolong the bull run in the SUI token and reclaim $1?
As the crypto market crash takes a break, the SUI price struggles to find a solid support level. Standing at a shaky neckline, the buyers attempt to avoid a bearish breakout in SUI.
Will the bullish attempt overcome the massive incoming supply waves for a recovery run ahead? Let’s find out.
SUI Hangs Near 50-day MA
The daily chart shows the bearish influence of the SUI token price trend. The price has declined by 74% from the $2 peak attained five months ago to the $0.53 support level.
However, from the psychological support, SUI quickly bounced back 89% in a matter of six days to reclaim the $1 psychological mark. Nevertheless, the massive supply at the psychological mark results in a sideways trend for the altcoin.
Based on the Fibonacci level, the altcoin fails to surpass the 38.20% level at $1.12, resulting in a breakdown below the 23.60% level at $0.89. Furthermore, the MACD and signal line give a bearish crossover.
A slightly optimistic signal is the 50-day moving average acting as the dynamic support to uphold the SUI price. Furthermore, a potential double top is visible in the daily chart.
Weakness in Closer Inspection
Taking a closer look at the double top pattern in the 4-hour chart, the underlying weakness in the SUI price becomes clear. Further, the double top pattern has a neckline at $0.79.
Currently, the altcoin is trading at $0.84, having surged 3.17% in the last four hours.
The minor recovery puts an uptick in the 4-hour RSI line and results in a slightly less intense bearish histogram in the MACD indicator. However, the 4-hour RSI line shows a bearish hidden divergence in the two bottom formations at $0.79.
As the SUI price tests the same support level, the RSI line decreases in value. Thus, the momentum indicator signals an underlying weakness, with an increased bearish breakdown possibility.
In case of a breakdown, the next support levels are $0.72 and $0.48, with minor support near the two psychological levels at $0.60 and $0.50. Based on the 4-hour Fibonacci levels, the 23.60% and 38.20% levels at $0.9395 and $1 can act as more immediate resistances.