The SUI’s impressive bearish momentum appears to be waning as technical indicators point to a potential downside, with the Relative Strength Index (RSI) showing overbought conditions, raising concerns about the sustainability of the recent session.
The $1.4 level is now entrenched, as this cooling strength suggests that a pullback may be on the cards, providing a key moment for the SUI as it navigates the growing market pressure. Will the bulls hold, or will a correction be made?
This article aims to analyze the recent action of the SUI price by considering technical indicators, especially the RSI, which suggest a possible cooling of the momentum. By examining the implications of overbought conditions and the possibility of a retest at the $1.4 level, this analysis aims to provide insight into whether the SUI trend will continue or if a correction is imminent.
Technical Indicators Point to Cooling Pressure: SUI Turning Point?
Despite the SUI price trading above the 100-day Simple Moving Average (SMA) on the 4-hour chart, the cryptocurrency is facing a significant pullback, aiming to retest the $1.4 level. This suggests that recent bullish pressure may ease as traders reassess key support and resistance areas.
Analysis of the 4-hour Relative Strength Index suggests a possible price decline to $1.4 as the RSI line drops from the overbought zone to the 50% limit, indicating that the SUI momentum may be losing strength.
Also, on the daily chart, the SUI is showing bearish sentiment as it tries to retest the $1.4 mark. Since breaking above the 100-day SMA, the price has experienced a consistent uptrend without significant pullbacks, indicating that a visible correction may be on the horizon.
Finally, on the 1-day chart, a detailed analysis of the RSI signal line shows that it has crossed the 50% threshold and is currently at 82%. This high reading raises concerns about potential overbought conditions, which could trigger a market correction or pullback.
$1.4 Review Looms: What Traders Should Watch Next
As the SUI approaches the critical level of $1.4, traders should be cautious, as a breach below this point may indicate a possible move to the support level of $1.16. If the price falls below $1.16, it may indicate a further decline to the $0.8690 level and above.
However, if SUI finds a strong rebound at the $1.4 level, the price may start to rise and reach an all-time high of $2.18. A break above this level may indicate a continuation of the uptrend, possibly paving the way for a new all-time high.
At the time of writing, SUI was trading at around $1.55, marking a 5.99% increase in the past 24 hours. The market capitalization of the cryptocurrency was around 4.1 billion dollars, with the trading volume exceeding 964 million dollars, showing an increase of 5.64% and 151.91%, respectively.