SUI token price surges, but selling pressure emerges, is a market correction imminent?
SUI is like a dark horse, and its price trend continues to be strong, becoming one of the few cryptocurrencies that can still maintain its upward momentum in adversity.
SUI has stepped into risky waters. In the past week, it has written a bullish legend in the cryptocurrency bear market with an astonishing growth rate of 11.34%. Currently, the trading price of SUI token is fixed at $1.8842, demonstrating its extraordinary strength. However, although there was a bullish candle yesterday, the increase reached 5.60%, but today's intraday increase was only 1.13%, and the 24-hour high of $2.0092 encountered selling pressure, indicating heavy resistance above.
The huge supply overhead is like a boulder pressing down on the top, making SUI's correction risk increasingly serious. However, what is remarkable is that in the past 60 days, SUI has achieved an astonishing increase of nearly 250% with a continuous trend reversal rebound.
From the 4-hour chart, SUI is showing an ascending channel pattern, but has now fallen from the upper track, suggesting the possibility of a bearish reversal. Meanwhile, the RSI indicator shows a bearish divergence, further exacerbating the market's pessimism. Although SUI continues to climb within the channel, the RSI is trending down, approaching the neutral line of 50, which may be an early warning sign of weakening market momentum.
Cryptocurrency analyst Martinez Ali recently tweeted a sell signal for SUI, pointing out that its bullish trend is nearing its end. Since September, SUI has risen 145%, and Ali captured this sell signal on the 3-day chart using the TD Sequential indicator. This suggests that the market may usher in a wave of corrections.
For the future trend of SUI, the bearish breakdown of the ascending channel may become a stumbling block on its road to recovery. Under the influence of the negative cycle, key support levels will face severe tests. On the 4-hour chart, the 50, 100, and 200 EMAs form important support at $1.73, $1.57, and $1.36, respectively. Once the daily chart falls below $1.7492, SUI may see a deep decline to the psychological support level of $1.50, with a drop of as much as 20%.
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