The SUI bearish thesis is gaining momentum as the price dips below the 4-hour simple moving average (SMA), an important metric in gauging market direction. A break below this level highlights growing selling pressure and raises concerns about the asset’s ability to recover in the short term.
The 4-hour SMA, which previously served as a support level, is now a major barrier to a potential bullish rebound, reflecting a clear shift in momentum in favor of the bears. This development tends to increase the likelihood of a continued collapse and will likely push SUI towards lower support levels.
Traders and investors are focused on the asset’s ability to stabilize and regain lost ground, and failure to do so could open the door to a deeper correction. Nevertheless, a recovery above the 4-hour SMA would be crucial in reversing the current trend towards an upward trajectory and showing renewed strength.
Analysis of SUI price trends: Signs of a deepening breakdown
Current price trends reveal that SUI is under significant bearish influence, with the $3.9 support level emerging as a key crossroads. SUI’s drop below the 4-hour SMA has heightened concerns that the decline will be prolonged as prices struggle to regain upward momentum.
The $3.9 level is currently acting as a potential cushion against further losses. A decisive break below this threshold could continue the bearish trend of lowering targets. Such a move would indicate an increase in negative sentiment and could also lead to increased selling pressure in the market.
However, if the support at $3.9 holds firm, it could provide the basis for a pullback. This scenario hinges on increased buying activity and improving market sentiment, which could push SUI back towards higher resistance levels.
Additionally, the current movement of the composite trend oscillator lends weight to the argument that the SUI bearish trend could continue towards the $3.9 level. This trendline and the RSI are approaching oversold territory, indicating increasing downside pressure and the possibility of further decline.
Can SUI avoid further decline?
SUI is currently under scrutiny for its ability to maintain key support levels and faces increasing market pressure as bearish momentum takes hold. A break below the 4-hour SMA further increases negative sentiment and signals a possible downtrend. Also, a break below the key support at $3.9 could trigger further declines, with the next support zone at $2.8 becoming the focus.
On the other hand, if the price maintains its position above $3.9, it could pave the way for a possible rebound, allowing SUI to break out of the 4-hour SMA and target resistance levels above $4.9. There is. So far, the upcoming sessions will be crucial in determining whether SUI is able to stabilize or succumbs to a more severe collapse.
