SUI's price has taken a substantial hit, dropping from its record peak of $5.36 earlier this month. Currently hitting a monthly low, the altcoin is facing the possibility of further declines.
Although traders are feeling the pinch of recent losses, they are holding onto hope for the cryptocurrency's comeback.
The Relative Strength Index (RSI) indicates a bearish trend dominating SUI's price movements, with the RSI dipping below the neutral line to its lowest point since August 2024. This signals challenging market conditions for an immediate recovery.
With the RSI trajectory pointing towards persistent bearish sentiment, there is a noticeable lack of buying interest. Traders are on high alert, closely watching if the momentum can stabilize, as any additional downturns might drive SUI into deeper losses. The market is currently missing the necessary signals for a strong turnaround.
Despite the downturn, the positive funding rate for SUI suggests traders are still optimistic about its long-term prospects. This optimistic stance has been prevalent since the beginning of the year, following the formation of SUI's all-time high. In contrast to December 2024, where short contracts were common even during minor dips.
This positive funding rate indicates a continued belief in SUI's potential, even amidst the ongoing challenges. This optimism is keeping the crypto token stable, potentially preventing a drastic sell-off if market conditions improve.
SUI's price has fallen by 22% in the last nine days, now trading at $3.87, after losing the $4.05 support level. However, it remains above the critical support at $3.69, crucial in avoiding further downside risks in the short term.
While SUI remains exposed to potential further losses at its current monthly low, holding above $3.69 could avert a major crash, giving room for market stabilization.
To counter the bearish trend, SUI needs to reclaim $4.05 as a support level. By doing so, it could pave the way for a potential recovery, targeting $4.35. This upward move could help offset recent losses and renew investor confidence.