Following a notable surge of close to 70% recently, SUI has experienced a rapid decline, losing 10% of its value over the past three days. Despite the strong bullish momentum that propelled the altcoin to the forefront, investors have remained unfazed by the sudden pullback.

The overall outlook for SUI appears promising, as on-chain metrics and market indicators suggest that this drop might simply be a temporary cooling off period.

Investors in SUI have reasons to be optimistic as the 50-day exponential moving average is approaching a potential crossover with the 200-day EMA, potentially signaling a golden cross. This significant technical signal could indicate a shift in long-term momentum for SUI, putting an end to the previous death cross that started seven weeks ago.

A golden cross often precedes substantial price rallies, and given that SUI had already seen a substantial price increase of nearly 70% before the recent dip, the bullish sentiment remains strong.

While the recent drop in price was triggered by the relative strength index (RSI) breaching the overbought mark, leading to profit-taking by traders, the RSI remains in bullish territory, indicating that the overall uptrend remains intact. This suggests that if buying pressure picks up again, further gains may be on the horizon.

Despite the current price of $3.16, which fell below a crucial support level, many traders view the 10.77% decline as a temporary setback. The proximity of the golden cross, the resilient RSI, and the strong upward trajectory suggest that SUI could soon reclaim $3.16 as support and potentially retest $3.59.

However, a failure to recover swiftly and breach key resistance levels could signal a trend reversal, jeopardizing SUI's upward momentum and potentially leading to further price decreases.