Crypto Quill

The crypto market has recently seen a bit of fear creeping in, and the SUI token seems to be feeling the pressure. After showing some signs of life with a short-term recovery, the price of SUI is now struggling to maintain any momentum. Could it be heading back to retest the $2 mark?

Struggling to Hold Momentum

The SUI token, currently trading at $2.27, has a market capitalization of $7.22 billion, placing it as the 19th largest cryptocurrency. Over the last week, it has managed a modest 4.40% recovery, but that hasn’t been enough to break the bearish trend that is forming.

Even with this minor uptick, SUI is trapped in a bearish pattern, and many are now wondering if the token is headed for a price correction. Could SUI’s price be gearing up for a drop below $2? The next few days could be crucial in determining its fate.

A Falling Channel on the Horizon

When we look at SUI’s price action on the 4-hour chart, a distinct falling channel pattern becomes apparent. This pattern indicates a downward trend, and the SUI token has recently found support near the psychological $2 mark.

What’s interesting is that this level has proven to be a strong area of defense for the price, but it remains unclear if that will hold up. The trendline support has allowed SUI to see a minor bullish comeback, but it hasn’t been enough to sustain a higher high formation.

SUI saw a double top near the $2.35 level, which often signals a reversal or retracement. The pullback from this pattern is already visible, with three consecutive bearish candles signaling that sellers might be taking control again. Could this be the precursor to a deeper dive below $2?

The Double Top Reversal

As mentioned earlier, the double top formation at the $2.35 price point has set off the current retracement. The price has recently pulled back, and the SUI token is now looking to retest the $2.21 support level. This is a critical level for SUI in the short term, as failure to hold above it could trigger a further drop.

The double top is often seen as a bearish reversal pattern, and with each successive price rejection, it seems that the SUI price is on the brink of another decline. A further push below $2.21 would only reinforce this bearish outlook and make a retest of the $2 psychological support more likely.

Key Indicators to Watch

Looking at the Bollinger Bands, the short-term recovery has already breached the 20-day simple moving average (SMA), which is often a sign that the market is shifting. However, the expansion of the Bollinger Bands and the lateral shift they are currently undergoing suggest that a period of consolidation is approaching.

For now, SUI is stuck between the center pivot level at $2.21 and the resistance level at $2.35. This consolidation could mean that SUI’s price is simply going through a brief pause before the next major move. But whether that move is upward or downward is still uncertain.

• The potential for a retest of $2 is growing stronger as bearish signals continue to emerge.
• Consolidation between key support and resistance levels suggests a possible breakout, but the direction is unclear.

What’s Next for SUI?

The price action and the current market sentiment indicate that SUI could be preparing for a retest of the $2 mark. Whether it will hold above this level or break through it could depend on a variety of factors. If the broader crypto market continues to show signs of fear, SUI may struggle to maintain its position above $2.

On the flip side, if the market sentiment improves, we could see a recovery back toward the $2.35 mark, but that seems a bit far off for now given the bearish pattern. Keep an eye on the key levels, especially $2.21 and $2.35, as they will determine where SUI goes from here.