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SUI is experiencing a significant pullback after its recent rally, with several key support levels coming into focus. When prices fall, this area will play an important role in determining whether an asset can regain its former glory bullish momentum. A strong defense of this support could signal the start of a new upward move, while failure to defend it could lead to a deeper decline.
This article aims to assess the recent pullback in SUI prices and explore critical support levels that could trigger a potential bullish reversal. By analyzing technical indicators and market conditions, it seeks to provide them outlook into possible recovery scenarios, highlighting the levels to watch for a sustained upward move or risk of further downside.
Recent Price Action: SUI Drop Explained
Recently, SUI price has turned bearish on the 4-hour chart, following rejection at the $2.1 resistance level. Despite the decline, however crypto currency is still above the 100-day Simple Moving Average (SMA), indicating that a recovery is possible, provided buyers regain control and the market returns to supporting the bulls.
The 4-hour Relative Strength Index (RSI) analysis suggests that buyers may be gearing up for a revival. Although the RSI has dipped to 55% of the overbought zone, it is still above the important 50% mark, indicating that the bullish momentum still continues. This position reflects a temporary slowdown, but as long as the RSI stays above this threshold, the market will maintain it potential for renewed upward movement.
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Additionally, on the daily chart, SUI is showing signs of negative pressure, trading above 100-day SMA. Although the price is still above the SMA, the current bearish move may be short-lived, as there is still a possibility of a price recovery. A position above the SMA implies that buyers may take action to reverse the trend if they regain control, potentially leading to an increase in price.
Finally, on the 1-day chart, a closer examination of the RSI formation suggests that SUI price may experience further downside, as the signal line has dropped to 69% of the overbought region. However, there is a possibility of bullishness returning if the RSI is able to maintain its position above the 50% threshold.
Key Support Levels: Where Can SUI Buyers Get Involved?
SUI is approaching a critical support level that could attract buyers and trigger a recovery. The initial key level to monitor is the $1.4 support zone, which could serve as a pivotal point for renewed bullish interest.
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If buyers enter at this level, SUI may rebound towards the $2.1 resistance mark. A successful breakthrough on top of this resistance could pave the way for the formation of a new all-time high, signaling a strong comeback.
However, if $1.4 support level fails, the next important area to watch is around $1.1, where a stronger support base could form as the price continues to decline. Maintaining this level is crucial as it will determine whether SUI can regain upward momentum or remain vulnerable to greater bearish pressure.
Featured image from YouTube, chart from Tradingview.com