- SUI trades for $3.88 with a $12.36B market capitalization, struggling beneath pivotal $3.85 support.
- TVL increased by 70% to $2.06B, user count increased by 35.24% to 190M, improving long-term prospects.
- Concentrations of heavy liquidations around $3.90–$3.95 increase the sell-offs.
SUI is around $3.88 following a 3.05% intraday drop, with its market capitalisation standing at $12.36 billion. It recently broke below crucial support of $3.85, indicating possible further downfall. The $4 barrier is still a significant challenge, having an impact on short-term price direction and market sentiment.
Crypto analyst @TitaniumXBTC suggests shorting SUI around $3.85 with a stop-loss at $4.06. This strategy follows a classic pullback approach aimed at capturing bearish momentum. The setup seeks to exploit any near-term weakness in SUI, especially with current technical signals aligning against a bullish reversal at this point.
SUI Critical Supports: $2.83 and $1.83
Profit targets for the short include $3.31, $2.99, and $2.48, allowing traders to secure gains during the decline. However, traders are warned about volatility around these targets, suggesting caution when scaling out. The broader sentiment reflects a bearish outlook unless a major reversal above $4 occurs in the near term.
Renowned analyst Trader_XO pointed out that SUI was rejected considerably at $4.24, falling back down to $3.68. A bearish RSI divergence indicates diminishing upward momentum. He cautions of further correction unless price regains the $4 mark, with $2.83 and $1.83 being notable levels of support on the downside.
Trader_XO added that failure to break above the $3.92–$4.00 zone could extend bearish trends into Q2 and Q3. Consequently, he opened a short position near recent highs. Still, he remains open to a bullish reversal should SUI close strongly above the $4 mark in coming sessions.
On-chain Strength Supports Bullish Sentiment
Contrasting this view, analyst Michael Van de Poppe noticed bullish potential with solid fundamentals. He points out that SUI has continually created higher highs, a bullish macro signal. The Total Value Locked (TVL) of the protocol also rose 70% in a month, up to $2.06 billion, further instilling investor confidence.
Analyst Torero Romero reported that SUI’s user base topped 190 million accounts, up by 35.24% in a month. First-time transaction increase indicates network acceleration, with a potential rally in the future should user growth continue in Q2.
According to The Kingfisher, a high-density cluster of long liquidations between $3.90 and $3.95 has strengthened recent sell-off pressures. A particular concentration around $3.933 has precipitated cascaded liquidation, driving prices down and fueling bearish pressures in all platforms.
The chart also indicates thin short liquidation positions over the current price indicating limited short squeeze potential. There is less upward pressure with fewer trapped shorts. The path of least resistance is still down unless $SUI can retake significant levels of resistance, even with positive network fundamentals.
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