Is Sui About to Crash? SUI Price Drops 9% as Traders Pile into a New Bitcoin Protocol – What Does it Do?
Sui Network has undertaken a dramatic -9% drop amid worsening performance, yet, could SUI price analysis reveal an upcoming push to the upside?
The downside movement after a bounce-off of the 20DMA on January 23 was fuelled by an announcement from Alibaba cloud that they were increasing support for the network.
$SUI
Thought price was gonna wick higher up, cut the lim order, would have been nice to get filled for a short scalp here tho into 1.12 area
On to the next one pic.twitter.com/uSPSyHSPfA
— Eddie Trades (@eddiextrades) January 25, 2024
But with double-top rejection forming a descendant trajectory amid lower highs, many traders are shifting towards a negative sentiment on the short-time frame.
In the midst of consolidation, Sui Network is currently trading at a market price of $1.25 (representing a 24-hour change of +6.21%).
Amid the lower high at $1.31, SUI price is now fighting to consolidate around the $1.16 price level.
If SUI bulls are able to mount a successful defence a this level, with immediate lower support from an ascendant 20DMA down at $1.12.
The 20DMA has provided a foothold of support for much of SUI’s rally since November 2023, highlighting the importance of this key moving average.
Meanwhile, the 200DMA remains low, at a -9.88% divergence below the lower trendline, offering bedrock support at $0.62.
Shifting attention to Sui Network’s indicators, the RSI is emerging as a cause for concern, once again pushing up into an increasingly bearish overbought signal at 59.74.
With the recent downtick also failing to significantly cool the RSI to an oversold signal, this could indicate a need for a deeper retracement on the short-time frame.
While the MACD is also shifting bearish, with a current reading at -0.0076
Read more on cryptonews.com
