The crypto market once again experienced a sell-off this week, leading to a plunge in the price of many crypto assets. The impact of this market downturn is not limited to Bitcoin alone, as it has affected various cryptocurrencies, including Sui (SUI), a Layer 1 smart contract platform. Sui has witnessed a significant decline of 15% in its value over the past seven days, reflecting the broader negative sentiment prevailing in the market.
Sui Dips Below $1 Support Levels
SUI experienced a significant setback this week, breaching its crucial support level at $1. This support had been maintained since early May, providing stability for the token during that period. However, after enduring two weeks of downward-sloping resistance from above, SUI finally succumbed to selling pressure.
Related Reading: Shiba Inu Burn Rate Surges 1500% In 24 Hours, Yet Price Continues To Struggle In Red
The token’s decline reached a low point of $0.95 on Wednesday, marking an all-time low for SUI since its launch at the beginning of the month. This sharp drop highlights the prevailing bearish sentiment surrounding the token and its challenges in the current market conditions.
Technical Indicators Point To Potential Bearish Path
Sui, a layer 1 smart contract platform, distinguishes itself with its unique programming language called ‘Move.’ Developed by the lead executives of Meta’s now-defunct Diem stablecoin project, Sui aims to address common pain points of first-generation blockchains, such as scalability and programmability.
Despite its innovative approach, Sui has struggled to generate substantial gains since its inception in the trading market. In the short term, the coin may continue to experience lower lows. According to technical analysis on TradingView, the current conditions indicate that asset selling might be prudent. Seven of the 11 daily technical indicators are signaling a ‘strong sell,’ with no indicators displaying buy signals.
Related Reading: Aptos Hackathon, Partnerships Set APT Bulls Up For A Strong Run
Additionally, the relative strength index (RSI) for SUI is currently hovering slightly above 40. With the RSI above 40, it suggests that there is a moderate level of buying pressure, but the overall sentiment remains uncertain.
To counteract this bearish trend, Sui would need to reclaim the $1.05 level as support, which could provide a foothold for potential recovery. However, if Bitcoin fails to maintain its support at $26,000, Sui will likely face further downward pressure, potentially sinking as low as $0.90.
Given the current market conditions and technical indicators, investors and traders should exercise caution and closely monitor Sui’s performance. Evaluating factors such as market sentiment, trading volume, and overall market dynamics will be crucial in determining the future trajectory of Sui and whether it can reverse its bearish trend. At press time, SUI price was $0.987 $ with a 24-hour trading volume of $89,278,135 USD.
-Featured image from iStock, charts from CoinMarket and TradingView.com