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With an analyst highlighting bullish exhaustion in SUI, will a bear cycle drop the prices to $1.50?
Amid the bear market, the resilience in the SUI price trend stays strong. The altcoin continues the uptrend, one of the few key performing coins in a bear market.
However, the massive supply overhead at $2 and the risky market conditions warn of a correction. Will this correction disintegrate the September (SUIptember) bull run gains?
SUI Enters High-Risk Waters
Sustaining a growth of 11.34% in the past seven days, SUI marks a remarkable achievement in maintaining a bullish trend in the crypto bear market. The SUI token is currently trading at $1.8842.
Following yesterday’s bullish engulfing candle, which saw a 5.60% jump, the SUI token shows an intraday gain of 1.13%. However, the rejection from a 24-hour high of $2.0092 indicates mounting selling pressure at higher levels.
Reflecting the massive supply overhead, the chances of SUI’s downfall are increasing. However, the ongoing trend reversal rally has caused almost a 250% jump in the past 60 days.
In the 4-hour chart, SUI is forming a rising channel pattern. Currently, it’s pulling back from the upper boundary of the channel, signaling the possibility of a bearish reversal.
Adding to the negative sentiment, the RSI indicator on the 4-hour chart shows a bearish divergence. While SUI has been moving higher within the channel, the RSI is declining, approaching the neutral 50 line, which could be a warning of weakening momentum.
Analyst Sounds Sell Signal for SUI
Crypto analyst Martinez Ali recently tweeted a sell signal for SUI, citing exhaustion in its bullish trend. Using TD Sequential indicators, Ali highlighted this signal in the 3-day chart, following SUI’s 145% rally since September. This suggests a potential pullback may be on the horizon.
Key Price Targets for SUI
A bearish breakdown of the rising channel could halt SUI’s recovery rally as the negative cycle tests critical support levels. On the 4-hour chart, the 50, 100, and 200 EMAs provide key support at $1.73, $1.57, and $1.36, respectively.
In the daily chart, a drop below the $1.7492 level could trigger a fall toward the $1.50 psychological support. This would be a massive 20% decline from its current value.
On the upside, a continuation of the bullish trend would face resistance at the $2 and $2.16 levels.