SUI experienced a 10% price drop over three days after failing to break the $3.59 resistance level
Technical indicators suggest this is a temporary cooldown rather than a long-term downtrend
A potential golden cross forming could end the seven-week “death cross” phase
The $3.16 support level is crucial for SUI’s recovery and continued upward momentum
Liquidation heatmap shows $3.14 and $3 are immediate liquidity pockets that may attract price action
SUI, a prominent altcoin in the cryptocurrency market, has recently experienced a significant price correction, dropping 10% over just three days. This decline comes after a period of strong gains toward the end of April. Despite this short-term pullback, technical analysis suggests that SUI maintains a bullish market structure, with several indicators pointing to a potential recovery.
The recent drop followed SUI’s failure to break through the $3.59 resistance level. This price point has proven difficult to surpass, leading to a pause in the rally and subsequent correction. The decline also coincides with the Relative Strength Index (RSI) entering overbought territory, making a cooldown almost inevitable as traders began taking profits.
Since Friday, May 2, SUI has shed 8.8% of its value. This retracement comes after the altcoin reclaimed a bullish market structure on the daily chart, having surged past the previous lower high at $2.78 on April 23.
Bitcoin’s recent price action has influenced SUI’s trajectory. When Bitcoin rallied from $85,000 to $93,000 in late April, SUI followed with strong gains. However, as Bitcoin faced rejection at the $97,000 level in recent days, SUI has mirrored its downward movement.
Technical Indicators Remain Positive
Despite the price drop, SUI’s broader outlook remains optimistic. The Chaikin Money Flow (CMF) indicator rose above +0.05, suggesting substantial capital inflows into the market. The Money Flow Index (MFI) reflects bullish momentum without forming a bearish divergence on the daily timeframe.
The most encouraging signal for SUI traders is the potential formation of a golden cross. This pattern occurs when the 50-day exponential moving average (EMA) crosses above the 200-day EMA, often indicating the beginning of a bullish trend.
For SUI, this golden cross could mark the end of the “death cross” phase that has dominated the market for the past seven weeks. The death cross appeared when the 50-day EMA dipped below the 200-day EMA, signaling bearish conditions.
The recent price decline may actually be a healthy part of this transition between market phases. Although SUI dipped below the critical $3.16 support level, the broader market indicators remain favorable for future gains.
Key Support and Resistance Levels
Investors are closely watching the $3.16 support level. If SUI can maintain this level and regain strength, it could lead to another test of the $3.59 resistance. Breaking past this point would signal continued upward momentum.
The three-month liquidation heatmap reveals that $3.14 and $3 are immediate liquidity pockets that the price will likely gravitate toward. Below those levels, $2.8 and $2.3 appear to be magnetic zones, though they may not attract the price as strongly.
If SUI fails to find solid support and continues to fall below $3.16, it could face a deeper correction, potentially heading toward the $2.77 mark. Such a move would signal a more serious trend reversal and could undermine the current bullish outlook.
In case of a bullish reversal, traders might target the $3.9 level next, which represents a liquidation cluster on the heatmap.
The price dip to around $3 may offer a buying opportunity, but careful traders should monitor Bitcoin’s sentiment before making decisions. For swing traders, the psychological round number support at $3 is particularly worth watching.
SUI’s recent drop appears to be a temporary adjustment rather than the start of a long-term downtrend. The impending golden cross, resilient RSI, and favorable market conditions suggest that the altcoin could soon regain its footing and resume its recovery path.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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