SUI’s price action on the daily chart has once again tested the crucial $3 support level, indicating a must-defend zone for the cryptocurrency. With steady losses in recent weeks and a lack of bullish conviction, there is a possibility of prices falling further to $2.43.
The recent bounce of nearly 20% from the $3 support level to reach the $3.6 supply zone may not repeat itself immediately, given the current state of the market. Liquidity levels suggest that SUI could be on a downward trajectory, with potential support levels at $3 and $2.43.
Analyzing the higher timeframes, the weekly chart shows swing points at $1.75 and $5.24, indicating a retracement phase. However, the daily and lower timeframes reflect increasing bearishness over the past month. The Awesome Oscillator is forming red bars on the histogram, signaling heightened downward momentum, while the CMF has not yet fallen below -0.05, indicating no significant capital outflows.
The 3-month liquidation heatmap highlights liquidity pockets at $2.84 and $3.9, with magnetic zones at $3.2 and $3.53. The 2-week liquidation heatmap also emphasizes the importance of the $2.84 zone as a short-term price target. It is likely that SUI prices will test this level before attempting a recovery.
To the north, liquidation levels are relatively sparse until the $3.37-$3.53 area, presenting a potential opportunity for a quick price bounce from $2.84 to $3.52, contingent on market-wide sentiment.
In conclusion, while selling pressure and bearish momentum persist, there is hope that the downtrend could be halted at key support levels. Traders and investors should closely monitor the $3 and $2.43 levels as crucial Fibonacci retracement zones.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or any other form of advice.
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