What you need to know:
- The SUI is falling towards weekly support as volume declines, and analysts are eyeing a major reaction in the demand zone.
- Oversold RSI and bearish MACD highlight weakening momentum as traders assess potential reversal signals.
- Analysts note that selling pressure has subsided, but confirm that a breakout will require regaining resistance on a higher time frame.
SUI saw a sharp decline on Saturday as the token moved closer to a key weekly support level. The price of the token was trading around $1.22 mark during the afternoon session, according to CoinMarketCap data.
In the last 24 hours, the price of the SUI token has fallen by 4.91%. The drop comes after the token already suffered a decline of 17.75% in the past week. Trading volume also fell 25.21% to $923.86 million.
Source: CoinMarketCap
SUI remains in the key accumulation zone
In an X-post, analyst Crypto Patel says marked that the price of the SUI token is still trading in a key zone where institutional investors are starting to buy the asset.
The price of the SUI token is still trading within a major bullish channel over the long term. The analyst also mentioned the demand zone between $1.15 and $0.80, which shows stability.
The price of the SUI token is trading around the sell-side liquidity area, which is also showing support based on the trendline. According to the analyst, the price must move above the resistance level to confirm the bullish bias.
The analyst also mentioned price targets for the asset based on the breakout scenario, which are around $5, $10 and $20.
Source: X
The analyst added that the compression phases always occur before the larger expansions. During these phases, smart money actions increase, while retail investor participation only increases once the confirmed trend becomes visible on the chart.
Also read: Stellar (XLM) stabilizes after the demand zone rises and eyes rise towards $0.36
Additionally, another analyst, BitGuru, said named that SUI is still in a macro downtrend. The token has also entered a strong demand zone after a period of consolidation. There is reduced selling pressure around current levels, but no signals of a potential reversal have been identified.
Source: X
Open interest and volume decline
According to CoinGlass factsA 29.63% drop in volume to $1.17 billion means a drop in the number of investors participating in the market. Open interest has fallen by 3.75% to reach $689.47 million, while OI-weighted funding rate is approximately 0.0012%.
Source: MintGlass
Momentum weak as RSI oversold and MACD falls
SUI’s Relative Strength Index (RSI) has indicated that the token is oversold, with a value of 26.17, which is a sign of weak momentum in the market. The signal line is at 36.15, which also means a downward trend.
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: Trading view
SUI is still under pressure and investors are waiting for the token’s response to the weekly demand zone. Before discussing a possible trend reversal, analysts are still waiting for confirmation.
Also read: Sui (SUI) is gaining momentum as its developer stage launches and TVL rises
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