Sui [SUI] has shed double-digit percentages on the price charts over the past week. It was part of a broader market meltdown as Bitcoin [BTC] raced south to $60k last week. The subsequent bounce to $72k has begun to reverse already though, negatively affecting the altcoin market once again.
SUI was no exception, with the selling pressure beginning to tell. Across the lower timeframes, the $1 psychological round number resistance was not overcome over the weekend. The latest slide below the local $0.965 support zone was a sign that bears were ready for the next price move south.
Assessing the long-term SUI trend
As it stands there is no questioning the long-term downtrend of SUI. The inability to convincingly crack the May 2025 highs at $4.3 resulted in a swing failure pattern at the same highs in late July.
Thereafter, the altcoin made a series of lower lows. By the end of October, hastened by the month’s sell-off and fear, the swing structure flipped bearishly.
Source: SUI/USDT on TradingView
The early January rally was halted at $2, once again reinforcing the importance of round number resistances for this altcoin.
The selling pressure since then has been hefty. The CMF on the daily chart has been below -0.05 for the past three weeks too, showcasing sizeable capital outflows.
Rejection at $1 illuminates the next move
Source: SUI/USDT on TradingView
The 4-hour chart revealed that $1.02 was the 61.8% retracement. Monday’s losses shifted the internal SUI price structure bearishly. This meant that the longer-term bearish trend was ready to resume once more.
A move back above $1.02 would be a warning sign to cut losses. A rally beyond the local high at $1.16 would invalidate the bearish idea. As things stand, this outcome seemed to be unlikely.
Traders’ call to action – Sell
The local lows at $0.788 are the current downtrend’s price targets, with $0.70 as the next extension target.
Traders will need to keep an eye on Bitcoin. BTC has the potential to bounce beyond $72k to hunt down short liquidations. This could ruin Sui short sellers’ plans and introduce high price volatility.
Final Thoughts
- SUI’s long-term trend has been bearish, and the loss of the psychological $1-level indicated a trend continuation.
- Rejection at the same $1-level over the last 48 hours allowed traders to take short positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Source: https://ambcrypto.com/heres-why-suis-failure-at-1-might-be-a-sign-of-more-downside-for-altcoin/
