SUI is having a rough day, with the price SUI is down more than 10.83% in the past 24 hours. A drastic cut is occurring as we speak. This decline occurs within the context of a larger cryptocurrency marketwide decline as the total market capitalization has decreased by 4.43% to $3.24 trillion. Despite the price drop, SUI's trading volume has surged by over 73% in the same period, reaching $1.61 billion, indicating heightened activity and volatility.

Over the course of the day, SUI shot up to a high of $3.37. An overarching bearish trend soon materialized, pushing the price down to a subsequent bottom at $2.94. According to technical analysis, the bearish trend could persist long-term. Should it fail, SUI’s price may fall below the critical $2.80 level, driving up bearish pressure further. Thus, a bounce back from the negative trend may increase SUI price significantly. If so, it would be a good opportunity to test the resistance level near $3.07.

Technical Indicators Signal Oversold Conditions

Additionally, the daily Relative Strength Index (RSI) for SUI is just 25.95. That means the asset is deeply oversold. This abnormality usually indicates that the asset is either underpriced and should experience a price reversal to rectify the disparity. Let’s be clear—oversold conditions can last a long time, particularly in a powerful downtrend.

A recent technical analysis of SUI indicates a bearish trend. This may increase its selling pressure, potentially pushing its value lower to come across support at $2.89. This support level now can act as a cushion from any further drops. Should it fail below, we might be looking at much deeper losses. The market experienced $13.39 million worth of liquidations within this steeper time frame of increased volatility.

Market Sentiment and Potential Scenarios

So far, market sentiment around SUI seems quite sour – as evident from the massive price plummet alongside bearish technical indication would imply grim situation. Investors will be watching these support and resistance levels closely to determine which way the asset may be heading next. If the price fails to hold above $2.80 support, it may trigger further selloff pressure. Conversely, if it breaks the $3.07 resistance with a successful test, we could witness a possible trend reversal.

The spike in trading volume indicates strong market interest in SUI, with active participation from both buyers and sellers. This higher fluctuation may lead to greater price volatility in the short run. The market is fumbling toward a new, more sustainable equilibrium. Investors are advised to be extremely careful and to thoroughly research any potential investment opportunities.

About the Author

Gastón Cuny, independent writer with more than 7 years of experience and cryptocurrency lover since 2020, drafted this explainer. Gaston is passionate about sharing new learnings and discoveries through InvestX, enjoying the adventure of navigating the crypto ecosystem.