SUI experienced a sharp decline on Saturday as the token moved closer to an important weekly support level. The price of the token was trading around the $1.22 mark during the midday session, according to CoinMarketCap data.
In the last 24 hours, the price of the SUI token has declined by 4.91%. The decline comes after the token already experienced a 17.75% decrease over the last week. The trading volume is also down by 25.21% to $923.86 million.
Source: CoinMarketCap
SUI Remains in Key Accumulation Zone
In an X post, analyst Crypto Patel highlighted that the price of the SUI token is still trading in an important zone where institutional investors start to buy the asset.
The price of the SUI token is still trading within an important ascending channel in the long term. The analyst also mentioned the demand zone between the $1.15 and the $0.80 mark, which has been showing stability.
The price of the SUI token is trading around the sell-side liquidity area, which is also showing support based on the trend line. According to the analyst, the price needs to move above the resistance level to confirm the bullish bias.
The analyst also mentioned the price targets for the asset based on the breakout scenario, which are around the $5, $10, and $20 marks.
Source: X
The analyst added that the compression phases always happen before the bigger expansions. During these phases, smart money actions increase, while retail investors’ participation only increases once the confirmed trend becomes visible on the chart.
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Furthermore, another analyst, BitGuru, mentioned that SUI is still in a macro downtrend. The token has also moved into a strong demand zone following a period of consolidation. There is reduced selling pressure around current levels, but it has not identified any signals that can indicate a potential reversal.
Source: X
Open Interest and Volume Decline
According to CoinGlass data, a 29.63% decrease in the volume to $1.17 billion signifies a decline in the number of investors participating in the market. The Open Interest has down by 3.75%, reaching a value of $689.47 million, while the OI-Weighted Funding Rate is around 0.0012%.
Source: CoinGlass
Momentum Weak as RSI Oversold and MACD Falls
The Relative Strength Index (RSI) of SUI has indicated that the token is oversold, with a reading of 26.17, which is a sign of weak momentum in the market. The signal line is at 36.15, which also signifies a downtrend.
The Moving Average Convergence Divergence (MACD) indicator is still bearish, with the MACD line at -0.0973 and the signal line at -0.0582, while the histogram is at -0.0390.
Source: TradingView
SUI is still under pressure, and investors are waiting to see the reaction of the token to the weekly demand zone. Before discussing any potential trend reversal, analysts are still awaiting confirmation.
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