Sui (SUI) appears to be stabilizing, as it has managed to stay above an important support level despite the recent losses. The token is now experiencing resistance, which may indicate that the market is still in a corrective phase.
SUI Price Rebounds Above Support
Analysts are pointing out that the current technical situation for SUI is critical. GainMuse, a crypto analyst, explained that the reason for the bounce of the token was that it rebounded from a lower support level, but is currently facing resistance from a descending trend. This indicates that the current trend for the token is still corrective.
At the time of writing, SUI is trading at $1.83 at the time of writing. The 24-hour trading volume sits at $1.10 billion, and the market capitalization is $6.99 billion. The token has gained 1.72% over the last 24 hours, indicating that buyers are cautiously stepping back in following recent declines.
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SUI Reclaims Key Support
Another market analyst, Scient, pointed out that SUI is doing what is expected of it as far as its technical analysis is concerned. After a strong sell-off, prices are now above a critical level of support that served as a major pivot level. A brief test of that level has been successfully reclaimed.
From a technical point of view, the important demand and decision level is shown in the graph through a grey box. As long as the price of the token remains above this level, the recent rise is still valid.
However, in case of a breakdown below this level again, further downward pressure can be witnessed. This level can help in moving towards the next resistance level of $2.35.
Several high-timeframe chart formations depict accumulation, and it appears that the token is building a base before the potential move up. Analysts have suggested that holding the levels that have been seen in the support areas is imperative for the next stage of the recovery process.
While the overall market situation in the crypto markets remains mixed, the short-term price action of the token will be dependent on its interaction with the descending resistance. Investors are closely observing this area, as a successful breakout above $2.35 could pave the way for further upside.
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