With analysts highlighting bullish exhaustion in SUI, will a bear cycle take prices down to $1.50?
The resilience of SUI’s price trend remains strong amid the bear market. The altcoin continues its uptrend and is one of the few key performing coins in the bear market.
However, the massive supply overhead at $2 and risky market conditions warn of a correction. Will this correction unravel the gains of the September (SUIptember) bull run?
SUI enters high-risk territory
SUI has maintained an 11.34% growth over the past 7 days, marking a notable achievement in maintaining a bullish trend amidst the crypto bear market. The SUI token is currently trading at $1.8842.
SUI Token is up 1.13% intraday following yesterday’s bullish engulfing candle which gained 5.60%. However, the rejection from the 24-hour high of $2.0092 suggests a growing selling pressure at higher levels.
Reflecting the massive supply overhead, the likelihood of a SUI collapse is increasing. However, the ongoing trend reversal rally has resulted in a gain of nearly 250% in the past 60 days.
In the 4-hour chart, the SUI is forming an ascending channel pattern. Currently, it is retracing 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 is showing a bearish divergence. While the SUI has been moving higher within the channel, the RSI is declining and approaching the neutral 50 line, which could be a warning of weakening momentum.
Analysts signal a sell on SUI
Cryptocurrency analyst Martinez Ali recently tweeted a sell signal for the SUI, stating that its bullish trend has been exhausted. Ali highlighted this signal on the 3-day chart using the TD Sequential indicator, following the SUI’s 145% rally since September. This suggests that a potential pullback could be imminent.
SUI's main price target
A bearish breakout of the ascending channel could stall the SUI’s recovery rally as the negative cycle tests critical support levels. On the 4-hour chart, the 50, 100, and 200 EMAs offer key support at $1.73, $1.57, and $1.36, respectively.
On the daily chart, a break below the $1.7492 level could trigger a drop to the psychological support of $1.50. This would represent a massive 20% drop from the current value.
On the upside, the continuation of the bullish trend will face resistance at the $2 and $2.16 levels.
