Bearish Pressure Mounts Over the SUI Price Rally—Will it Offer a Good Entry Before Smashing $6?

The post Bearish Pressure Mounts Over the SUI Price Rally—Will it Offer a Good Entry Before Smashing $6? appeared first on Coinpedia Fintech News

With Bitcoin gaining momentum, the crypto markets have begun to rise. With the trading volume restricted within a range, the bulls were working hard to maintain a healthy ascending trend. Meanwhile, the SUI price seems to have been failing to gain the investor’s attention as the price levels continue to trade within a range-bound, facing enormous upward pressure. 

Now the question arises whether the SUI price will drop to the local support and offer a good entry for new investors or repeat the previous pattern and print a huge bullish candle, rising over 20%.

Recently, the SUI blockchain experienced a major exploit that drained over $200 million from the markets. Besides, Hyperliquid price broke out of the range and formed a new ATH that dragged SUI price below in the crypto rankings, which has been a major setback. In the times when the price is not displaying a possibility of a breakout, the SUI price is now believed to test the local support before the next price action. 

The SUI price is stuck within a pivotal range between the resistance zone of $3.73-$3.8 and the support zone of $3.3-$3.23. Currently, the price has dropped to the lower bands of Bollinger, while they have begun to squeeze, which indicates a period of low volatility. However, a squeeze usually results in a breakout and a potential trend reversal. Meanwhile, the price is expected to consolidate a little more to trigger a breakout, and hence, a drop to the support appears to be fast approaching. 

On the other hand, the CMF and RSI continue to maintain a steep descending trend, which suggests a drop in the rally strength as well as the money flow into the token. This substantiates the bearish claim of plunging to $3.25, which may erase the selling pressure and pave the way for a strong rebound followed by a healthy ascending trend.