The SUI’s impressive upward momentum appears to be losing steam as technical indicators point to a potential cooldown and the Relative Strength Index (RSI) signals overbought conditions, raising concerns about the sustainability of the recent rally.
The $1.4 level is now in focus as this cooling force suggests a pullback could be in the cards, offering a critical juncture for SUI as it navigates through rising market pressure. Will bulls hold their ground or is a correction ripe for the taking?
This article aims to analyze the recent price action of SUI in lithe of technical indicators, particularly the RSI, which suggests a potential cooling of momentum. By examining the implications of overbought conditions and the likelihood of a retest of the $1.4 level, this analysis aims to provide insight into whether the SUI uptrend will continue or if a correction is on the horizon.
Technical indicators point to cooling dynamics: turning point in NTM?
Even though SUI is trading above the 100-day uncomplicated moving average (SMA) on the 4-hour chart, the cryptocurrency is undergoing a noticeable decline, aiming to retest the $1.4 level. This suggests that the recent upside pressure may be slowing as traders reassess key support and resistance zones.
Analysis of the 4-hour Relative Strength Index suggests a potential decline towards $1.40 as the RSI line is coming down from the overbought zone towards the 50% threshold. This could indicate that the SUI bullish momentum is losing steam.
Moreover, on the daily chart, SUI is showing bearish sentiment as it attempts to retest the $1.4 level. Since breaking the 100-day SMA, the price has experienced a steady uptrend without any significant pullbacks, indicating that a noticeable correction could be on the horizon.
Finally, on the 1-day chart, a detailed analysis of the RSI signal line shows that it has crossed the 50% threshold and is currently sitting at an impressive 82%. Such a high reading raises concerns about potential overbought conditions, which could trigger a correction or a pullback.
$1.4 Retest Fast Approaching: What Traders Should Watch Out For
As SUI approaches the critical $1.40 level, traders should remain vigilant as a breakout of this point could indicate a potential move towards the $1.16 support level. If the price breaks below $1.16, it could signal a further decline towards the $0.8690 level and beyond.
However, if SUI sees a forceful rebound at $1.4, the price could start to rise again towards its all-time high of $2.18. A break above this level could indicate a continuation of the uptrend, potentially paving the way for a up-to-date all-time high.
At the time of writing, SUI was trading at around $1.55, up 5.99% in the last 24 hours. The cryptocurrency’s market capitalization was around $4.1 billion, and trading volume exceeded $964 million, reflecting growth of 5.64% and 151.91%, respectively.
