SUI cryptocurrency has entered potential bearish territory. Its weekly Relative Strength Index has fallen below the critical 50% mark. This technical shift coincides with the price approaching a key support level at $2.36.
Market analysts view the RSI breakdown as significant. This widely-followed momentum indicator suggests diminishing buying pressure in recent trading sessions. The shift occurs after SUI experienced several strong upward movements earlier this year.
"The RSI decline below 50% typically indicates weakening momentum," said a cryptocurrency market analyst. "This breakdown could signal that sellers are gaining control of price action."
Technical analysis shows SUI has also dropped below the 50% Fibonacci retracement level. This development further weakens its bullish structure. The combination of these technical factors suggests growing bearish sentiment among traders. If selling pressure intensifies, SUI could break below the $2.36 support. This breakdown might accelerate the downward trend. Analysts identify lower support zones at $1.59 and $1.42 as potential targets if bearish momentum continues.
Recovery would require several key developments. A strong bounce from current support levels could indicate buyers defending the price. This defensive action might ease selling pressure and potentially create conditions for reversal.
The 50% Fibonacci retracement level remains crucial for bulls. A decisive move back above this threshold would signal renewed strength. Technical analysts also watch for bullish divergence patterns forming on the RSI as an early recovery signal.
Broader cryptocurrency market conditions will influence SUI's trajectory. Bitcoin's price action and overall market sentiment could provide tailwinds for recovery. Under favorable conditions, SUI might challenge resistance levels at $2.82 and eventually $3.50.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.