- SUI faces mounting bearish pressure as it struggles to hold the critical $4 psychological level, with a potential drop to $3.65 if support breaks.
- However, a bullish breakout above the current channel pattern could reignite optimism and push the price toward the $4.80 to $4.85 resistance zone.
Amid rising volatility in the crypto market, SUI is battling to hold its ground above the critical $4 psychological mark. This level has become a battleground for bulls and bears, with the token’s price hovering precariously close to it after a bearish weekend.
At the time of writing, SUI is swapping hands with $4.24 after a 4.09% surge in the past 24 hours. Additionally, the digital asset has fallen short 7.63% in the past month leading to a $12.41B market cap.
Current Market Position
SUI holds a market cap of $12 billion, positioning it as the 15th largest cryptocurrency. However, growing bearish sentiment is threatening to push the price below the $4 level. The repeated testing of this threshold has traders on edge, signaling a potential continuation of the downward trend.
A closer look at the 4-hour chart reveals that SUI is undergoing a correction phase, forming an expanding channel pattern that underscores the intense struggle between buyers and sellers.
The ongoing pullback has already shaved nearly 18% off SUI’s all-time high, placing the token on a downward trajectory. SUI is now testing the 200 EMA line, a significant support level that could determine the direction of its next major move.
Adding to the bearish signals is a negative crossover between the 50 and 100 EMA lines, further intensifying downward pressure. The price currently faces stiff resistance from the trendline, with unsuccessful attempts to break higher.
The likelihood of SUI closing below the 200 EMA line appears strong, increasing the chances of a retest of the support trendline near $3.65. If this level fails to hold, the altcoin could see additional selling pressure, driving the price even lower.
Conversely, a breakout above the expanding channel pattern would signal a reversal, potentially pushing the price toward the supply zone. Overcoming this resistance could reinvigorate market sentiment and attract bullish momentum.
SUI’s struggle to maintain momentum underscores the precarious nature of the crypto market. While a decisive break below $4 could deepen the correction, a bullish breakout offers the potential for recovery. For now, traders are closely monitoring key support and resistance levels as SUI’s next move hangs in the balance.
SUI To Unlock 64 Million Token
Additionally, the crypto community is also concerned about SUI’s upcoming token unlock which will see a significant chunk of SUI tokens flooding the crypto market. The popular layer-1 blockchain, Sui, will undergo a scheduled token unlock on January 1st. 64 million SUI tokens will be added to the circulating supply of 2.92 billion. It is important to note that the majority of SUI tokens remain locked, minimizing the potential impact of this unlock event.
