SUI is currently trading at approximately $1.52 as it attempts to recover from one of the sharpest declines observed in recent weeks. Traders are evaluating whether this movement indicates a genuine shift in momentum or merely a temporary pause in a broader downtrend. The recent recovery above the $1.45 threshold is viewed as a crucial sign of potential stabilization, according to analyst DaanCrypto, who emphasized the importance of this level for any prospective recovery.
The next significant hurdle for SUI lies at the $1.60 resistance point. DaanCrypto”s analysis indicates that breaking through this level could trigger a more substantial relief rally. If bullish momentum pushes SUI past $1.60, the price could accelerate quickly due to a lack of historical resistance in that range, allowing for a rapid retracement of recent losses.
However, if SUI struggles to reclaim this critical level, the market may face challenges, as there are still areas of untapped lower highs and liquidity that could drag the price down further. The chaotic price action observed this week illustrates the fragile state of the market, with SUI having plunged into the low $1.30s before bouncing back into the mid $1.50s, yet the recovery remains erratic.
Current market sentiment reflects heightened volatility, with a reading of Extreme Fear at 25 on the Fear & Greed Index. This indicates a bearish market environment, further complicated by elevated volatility at 17.7%. Additionally, only 43% of the last 30 days have closed in the green, and the 14-day RSI stands at 35.30, indicating a near-oversold condition—this often suggests temporary bounces may occur but does not guarantee sustained upward movement.
Longer-term analysis reveals that SUI is trading significantly below major moving averages, with the 50-day SMA at $2.23 and the 200-day SMA at $2.96. Even a strong rally toward the $1.80 to $2.00 region would likely be viewed as a mere relief move rather than a definitive trend reversal. Projections from CoinCodex indicate a potential target of $1.17, suggesting a possible downside of 24% unless the market can break through resistance levels.
In conclusion, while the reclaiming of the $1.45 level suggests that buyers are still present, the future trajectory of SUI will largely depend on whether it can surpass the $1.60 resistance. A breakout could provide the necessary momentum for a stronger recovery, while failure to do so may lead to renewed pressure and a return to untested liquidity zones.
