SUI Price Struggles at $1.47 As Downtrend Continues: Relief Bounce in Play
- SUI remains in a short-term downtrend, forming lower highs and lower lows.
- The current price of around $1.47 shows a tentative bounce from a demand zone, but bullish confirmation is lacking.
- Market structure suggests ongoing consolidation within a larger bearish trend rather than a strong reversal.
SUI/USD is showing persistent weakness after multiple rejections at key resistance levels. The token has been forming a clear pattern of lower highs and lower lows, reflecting ongoing selling pressure.
In the 1-hour chart, the price initially ranged in a consolidation area where the sellers and buyers were evenly matched, but breaking below the range indicated that the sellers were in control.
The quick test of the former support level, which acted as a new level of resistance, indicated that the downtrend was underway, and the price continued declining.
Analyst BitGuru explained that the strong sell-off at either $17 or $18 indicated that there were strong sales, as the token plummeted. This indicated that there is a short-term market dominated by sell orders, with rallies being met with strong resistance.
SUI Bounces from Short-Term Demand Zone
Despite the downward trend, SUI has recently bounced off a region of demand and is currently at about $1.47. This represents a short-term bottom where the selling pressure is not as strong, thus creating a chance for a small bounce.
However, the bounce remains weak, and the breakout above the current region failed to move into the previous regions of resistance.
Analyzing the daily chart on TradingView, it is clear that the market is still weak. Since November, the market has been falling. Each rally seen in the market has failed to break the current trend.
This suggests that the current market is weak. There is no strong indication of buying pressure, as evidenced by low momentum. Momentum is evidenced by the RSI, which is about 43-44.
SUI Shows Relief Bounce, Not Trend Reversal
The present movement in SUI is more of a relief rally rather than an indication of a strong reversal in the market. The pullback information indicates that the market is taking some time to correct itself rather than moving upwards.
For an indication of a bullish reversal to occur in SUI, it will have to move above the green zone identified in this analysis and move through previous levels of resistance while displaying strong buying volume. Otherwise, there may be more rejection levels and testing of new lows.
Also Read: SUI Could Surge to $2.4 as Sagint Choose Sui for Real-World Asset Tokenization
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